What Is Ribbon Finance?
Ribbon Finance is a platform that offers structured products for crypto assets. It provides a robust system for users to deposit tokens into vaults that generate yield via specific strategies.
Background
Julian Joh and Ken Chan founded Ribbon Finance in 2021. Ribbon Finance has since transitioned to Aevo.
How It Works
Users deposit tokens into vaults that generate yield through covered-call or put-selling option strategies. The vaults mint weekly options using Opyn, and algorithmically the optimal strike price is selected. These options are then auctioned to the highest bidder, with the premium representing the yield the depositors earn. The system profits if the options expire out-of-the-money but may suffer a loss if they expire in-the-money. Users can also lock RBN tokens to earn a portion of the platform’s fees.
The governance and fee-sharing token of Ribbon Finance is RBN. Holders of RBN can propose and vote on changes within the protocol, thus participating in the platform’s governance.
Key Takeaways
- Ribbon Finance is a platform that provides structured products for crypto assets.
- It was founded by Julian Joh and Ken Chan in 2021.
- Users can deposit tokens into vaults that generate yield through specific strategies.
- The platform uses a system that profits if the options expire out-of-the-money but may suffer a loss if they expire in-the-money.
- RBN, the governance and fee-sharing token of Ribbon Finance, allows holders to propose and vote on changes within the protocol.
