Ribbon Finance is a new protocol that helps users access crypto structured products for DeFi. It combines options, futures, and fixed income to improve a portfolio’s risk-return profile. Ribbon Finance is a new protocol that creates crypto structured products for DeFi. Here you can find the product descriptions and outgoing links to the different communication channels if you want to contribute.
Ribbon Finance is a new protocol that creates crypto structured products for DeFi. Structured products are packaged financial instruments that use a combination of derivatives to achieve some specific risk-return objective, such as betting on volatility, enhancing yields or principal protection. Ribbon currently offers a high yield product on ETH which generates yield through an automated option strategy. Ribbon will continue to expand the product offerings over time, including community-generated structured products.
If you’re eligible, then you will be able to see your claim amount.
Click on the RBN amount and claim to get your tokens.
A total of 21M RBN has been allocated to past & existing users of Ribbon products, a total of 5M RBN has been allocated to members of the Ribbon Discord who’ve sent >5 messages and a total of 4M RBN has been allocated to users of existing options protocols on Ethereum: Hegic, Opyn, Charm, and Primitive. For detailed information regarding the airdrop distribution, see this Medium article.
The claimed RBN tokens will remain non-transferable and can only be used for voting. It may only become transferable later on if there is a strong governance turnout.
For more information regarding the airdrop and RBN, see this Medium article.
Theta Vault is a new product that automates a covered call strategy to earn high yield on ETH. The vault runs a covered call strategy and sells out of the money call options on a weekly basis for yield. You can read more about the strategy here.
Theta Vault currently uses Opyn’s infrastructure to mint and trade the options tokens on-chain. They chose Opyn because the protocol lets us create tokenized ETH options with custom parameters out of the box. This allows us to be flexible on the choice of strikes, expiries, and exchange method.
Ribbon Finance is airdropping their new governance token “RBN” to various early participants. A total of 30,000,000 RBN has been allocated to past & existing users of Ribbon products, active Ribbon Discord members and users of existing options protocols on Ethereum: Hegic, Opyn, Charm, and Primitive.
On the Ethereum blockchain, wallets have full control over their ERC20 tokens. In order to let an application spend a wallet’s tokens, the user has to explicitly give permission to the application to spend them. This is what’s called an ERC20 allowance. Theta Vaults prompt users to approve an unlimited amount so that users do not have to re-approve the application on a subsequent deposit.
How do know The am getting the best price for a Strangle?
Ribbon finds the cheapest price for each option on-chain, for the position size that you are trying to trade. Before you checkout, the Ribbon UI will show you the prices of the underlying call and put options.
You can access and exercise your positions at the Positions page. Generally positions that have call or put options which are in-the-money can be exercised. Due to the differences in how the underlying options protocols work, some positions can only be exercised after expiry, whereas others can be exercised only before the expiry.
They have an ongoing bug bounty on ImmuneFi, with up to $50,000 of bounty. The contracts that are included in the bounty are ETH and WBTC Theta Vaults. Ribbon’s Theta Vault is audited. To be specific, below are the contracts that were audited. The rest of the smart contract code released by Ribbon are not audited yet and should be treated as alpha software. They advice users to exercise caution and to not risk funds they are not willing to lose.
Series V is a series of products that help users speculate on the volatility of a crypto asset. The first product in Series V is the ETH Strangle product which allows users to make money when ETH is volatile over a time period.
Currently Strangle contracts are only traded on Ribbon. We do not tokenize the Strangle positions yet, so they are not tradable on a secondary exchange such as Uniswap.
What Options Protocol does the Theta Vault use?
Theta Vault currently uses Opyn’s infrastructure to mint and trade the options tokens on-chain. We chose Opyn because the protocol lets us create tokenized ETH options with custom parameters out of the box. This allows us to be flexible on the choice of strikes, expiries, and exchange method.
What are the risks of the Theta Vault?
The primary risk for running this strategy is that depositors could potentially give up upside in exchange for guaranteed yield. By selling a call option, users are basically promising to sell the asset at the strike price, even if it goes above it (a.k.a selling early). Because of this, if the price of the asset moves up significantly in a short period of time, it is possible for depositors to have “negative yield” on their ETH.
However, this only happens if ETH/USD appreciates significantly, so depositors will still be up in USD terms. The vault also sells call options that are very out of the money, which means there is a relatively low chance of the options getting exercised.
The smart contracts are audited by Peckshield. Despite that, users are advised to exercise caution and only risk funds they can afford to lose.
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