The DeFi options market is very young and cumulatively has less than $200m in total value locked. Over the past four months, a synergistic relationship has developed between Ribbon Finance, a structured product provider, and Opyn, an on-chain options protocol. These two protocols account for over $100 million in TVL and $90m worth of on-chain options volume weekly. This TVL and volume can be attributed mainly to Ribbon’s first line of products – the “Theta Vaults”.
Ribbon currently offers four different Theta Vaults which are effectively short volatility with a directional bias on the crypto market. These vaults sell weekly covered calls and protected puts on Ethereum and Bitcoin via Opyn’s on-chain options platform. It’s worth noting that $90m of TVL is being counted twice: once in Ribbons Vaults and again as the assets are deposited into Opyn as collateral.
A good analogy would be that Ribbon is the Yearn to Opyn’s Curve. Ribbon’s unique products simplify what is typically an active experience, where users monitor positions and do several transactions per week, into a passive one. They allow users to easily express views on the direct
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