Ribbon Finance


Discover Ribbon Finance's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Ribbon Finance?

Ribbon Finance (RBN) is a suite of decentralized finance (DeFi) protocols that provide users with access to crypto structured products. It combines derivatives, lending, and a proprietary on-chain options exchange (Aevo) to offer a one-stop solution for managing risk and return profiles. The platform includes various products such as Theta Vaults, Ribbon Earn, Ribbon Treasury, and Ribbon Lend, each designed to optimize yields and mitigate risks through different strategies.

How is Ribbon Finance used?

Ribbon Finance (RBN) is the native cryptocurrency of the Ribbon Finance protocol, a decentralized finance (DeFi) platform that offers structured crypto products and investment strategies. The primary use of RBN is for governance voting within the protocol. Users can stake RBN to participate in governance decisions, and the more RBN they stake, the more voting power they have.

Additionally, RBN is used to incentivize liquidity mining programs, provide grants to developers, and support other initiatives that improve the protocol. The token also plays a crucial role in the weighting system of the Ribbon DAO, where users can lock RBN to obtain veRBN (vote-escrowed RBN) tokens, which further enhance their governance power and rewards.

In terms of yield generation, RBN holders can earn rewards on staked vault tokens and participate in gauge voting to redirect liquidity mining rewards. Furthermore, RBN holders have a share of the protocol revenue, making it a key component of the overall tokenomics.

How do I store Ribbon Finance?

To store Ribbon Finance (RBN) tokens, you will need to choose a suitable wallet. Some good options for Ribbon Finance wallets are available, and you can select one based on your preferences.

How to buy Ribbon Finance?

To buy Ribbon Finance (RBN) tokens, follow these steps:

  1. Create an account: Sign up for a cryptocurrency exchange that supports RBN, such as Coinbase, Gate.io, or Uphold. Ensure you have a valid ID and proof of address ready for verification.

  2. Add a payment method: Connect a payment method like a bank account, debit card, or wire transfer to your exchange account.

  3. Search for Ribbon Finance: On the exchange platform, search for Ribbon Finance (RBN) and select it from the list of available assets.

  1. Enter the amount: Input the amount you want to spend in your local currency, and the exchange will automatically convert it to RBN.

  2. Finalize the purchase: Review the details of your purchase and confirm the transaction. Once processed, you will have RBN tokens in your account.

Additionally, you can also use a digital gift card or PayPal (for US customers) to purchase RBN tokens on Coinbase.

Ribbon Finance
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History of Ribbon Finance

Ribbon Finance, a decentralized finance (DeFi) protocol, was co-founded in November 2020. The platform was officially launched on February 15, 2021, by co-founder Julian Koh, a former software engineer at Coinbase. Ribbon Finance aimed to generate yield by combining futures, options, and fixed income to improve a portfolio's risk-return profile. It introduced structured products, which are pre-packaged investments incorporating interest-bearing assets and derivatives, into the DeFi space.

Launch and Governance

In May 2021, Ribbon Finance launched its RBN token, enabling community governance over the platform. The RBN token is an ERC-20 governance token used to vote on decisions pertaining to the protocol. An airdrop of RBN tokens took place in May 2021 to decentralize governance processes and reward early supporters.

Tokenomics and Staking

The RBN token is integral to the Ribbon ecosystem, used for grants and liquidity mining programs. Ribbon's staking model allows RBN holders to stake their tokens in exchange for Staked Ribbons (sRBN), which can be used for on-chain governance. The protocol incentivizes long-term users by providing more voting power, higher future RBN rewards, and a more significant share of the Ribbon protocol revenue based on the duration of staking.

Rebranding and Merger

In Q3 2023, Ribbon Finance merged its branding under the Aevo name. As part of this rebranding, the RBN token is expected to be replaced by the AEVO token at a 1:1 swap rate. The team plans to complete the rebranding of all communication channels to Aevo and wind down the Ribbonomics system, allowing users to swap their RBN tokens into AEVO without deadline or limitations.

Products and Growth

Ribbon Finance offers a range of structured crypto products through its one-click deposit "vaults," which automate complex investment strategies and provide sustainable, risk-adjusted yield. The platform's products include DeFi Options Vaults (DOVs), which give users access to covered call selling and cash-secured put selling strategies. Despite struggling to scale, Ribbon Finance has continued to grow, with its token showing resilience in the bear market.

Ribbon Finance
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How Ribbon Finance works

Ribbon Finance is a decentralized finance (DeFi) protocol that simplifies the process of participating in complex structured products, such as derivatives and options, on the Ethereum blockchain. The protocol offers a suite of products, including Theta Vaults, Ribbon Earn, and Ribbon Treasury, which automate yield generation strategies and provide users with sustainable, risk-adjusted returns.

Theta Vaults (DOVs)

Theta Vaults, also known as DeFi Options Vaults (DOVs), are yield-oriented strategies that involve selling European options with weekly expiration. The vaults reinvest the premiums earned from selling these options back into the strategy, effectively compounding them for depositors over time. There are two types of Theta Vaults: covered call selling and put selling. These vaults are designed to provide users with a steady yield without relying on token incentives.

Ribbon Earn

Ribbon Earn vaults employ fully funded strategies to capitalize on intra-week ETH movements while protecting capital. These vaults earn a base APY and use the remaining funding to purchase weekly options. There are two types of Ribbon Earn vaults: Earn USDC and Earn stETH. These vaults allow depositors to capitalize on ETH movements in either direction.

Ribbon Treasury

Ribbon Treasury is a private version of the Theta Vaults, designed specifically for decentralized autonomous organizations (DAOs). These private vaults run custom strategies for each DAO, allowing them to choose parameters such as strike selection methodology, tenor, and premium currency.

Ribbon Lend

Ribbon Lend is an uncollateralized lending platform that allows depositors to lend unsecured to institutional market makers. It offers high yields without lockups and includes off-chain enforcement, credit underwriting, and built-in insurance. However, Ribbon Lend is currently paused until further notice.

Governance and Tokenomics

Ribbon Finance has a governance token called RBN, which is used for voting on proposals and influencing the direction of the protocol. The tokenomics of RBN include a weighting system based on locking RBN for veRBN tokens, which provide additional utility and incentives for governance participation. The total supply of RBN is 1,000,000,000, with a distribution that includes community treasury, team, investors, corporate property, airdrop recipients, liquidity mining participants, and initial market makers.

Key Features
  • Simplified Access: Ribbon Finance simplifies the process of participating in complex structured products, making it accessible to a wider range of users.
  • Automated Strategies: The protocol automates yield generation strategies, reducing the need for manual monitoring and optimization.
  • Risk-Adjusted Returns: Ribbon Finance focuses on providing sustainable, risk-adjusted returns, rather than relying on token incentives.
  • Governance: The RBN token is used for governance, allowing holders to participate in decision-making processes and influence the direction of the protocol.

Overall, Ribbon Finance aims to provide users with a comprehensive solution for optimizing their risk-return profile by combining derivatives, lending, and proprietary strategies on the Ethereum blockchain.

Ribbon Finance
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Ribbon Finance's strengths

Ribbon Finance (RBN) has several strengths that contribute to its value and potential in the decentralized finance (DeFi) space:

  1. Governance and Tokenomics: Ribbon Finance has a robust governance system, utilizing the RBN token for voting and decision-making. The tokenomics model includes a weighting system based on locking RBN for veRBN tokens, which enhances governance and incentivizes long-term stakeholders.

  2. Structured Products and Yield Generation: Ribbon Finance offers a suite of structured crypto products, providing users with automated investment strategies through vaults. These vaults focus on generating sustainable, risk-adjusted yield via derivatives and options, making it simpler for users to participate in robust yield strategies.

  3. Decentralized and Community-Driven: Ribbon Finance is a decentralized platform, with a strong focus on community involvement. The community treasury, which holds 49% of the total token supply, is controlled by RBN governance and can be used to incentivize liquidity mining programs, provide grants to developers, and improve the protocol.

  1. Rebranding and Integration with Aevo: Ribbon Finance is undergoing a rebranding and integration with Aevo, a non-custodial options and perpetual futures exchange. This move aims to eliminate the limitations associated with the Ribbon name and provide users with more advanced DeFi products.

  2. Strong Development Team: The project has a team of experienced developers, including co-founder Julian Koh, who previously worked at Coinbase. This expertise has helped in creating sophisticated DeFi products and maintaining the platform's growth.

These strengths position Ribbon Finance as a significant player in the DeFi space, offering users a robust platform for generating yield and participating in decentralized governance.

Ribbon Finance's risks

Ribbon Finance (RBN) is associated with several risks that investors should be aware of:

  1. Volatility and Liquidity Risks: The value of RBN can fluctuate significantly, and liquidity issues may make it difficult to buy or sell the token quickly enough or at a favorable price.

  2. Market Risk: The vaults are exposed to market risk, which can impact the value of the assets deposited.

  3. stETH/ETH Price Risk: The protocol is also susceptible to price risks related to stETH and ETH, which can affect the performance of the vaults.

  1. Slashing Risk: There is a risk of slashing, which can result in penalties or losses for users.

  2. Competition Risk: Ribbon Finance faces competition from other DeFi protocols, which can impact its adoption rate and the success of RBN.

  3. Regulatory Risks: Changes in laws and regulations can negatively affect the use, transfer, or value of RBN, and such changes can be sudden and without notice.

  1. Security Risks: RBN is vulnerable to code defects, security breaches, and other threats that can compromise the integrity of the token and its supporting blockchain.

  2. Short History Risk: RBN has a relatively short history, which makes it difficult to assess its long-term performance and stability.

  3. Demand Risk: The value of RBN is dependent on demand, which can be unpredictable and subject to market fluctuations.

  1. Forking Risk: The possibility of forking, where the blockchain splits into different versions, can impact the value and functionality of RBN.

  2. Electronic Trading Risk: Technical issues with electronic trading systems can disrupt the trading of RBN.

  3. Cybersecurity Risk: RBN is exposed to various cybersecurity threats, including hacking, which can result in losses for users.

These risks highlight the importance of thorough research and risk assessment before investing in RBN or any other crypto asset.

Ribbon Finance
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Did Ribbon Finance raise funds?

Ribbon Finance
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Ribbon Finance’s team

  • Julian Koh: Co-founder of Ribbon Finance, previously worked as a software engineer at Coinbase.
  • Ken Chan: Co-founder of Ribbon Finance, previously worked as a software engineer at Coinbase.
  • Other Team Members: Ribbon Finance has a total of 7 team members, aiming to grow to support multi-chain efforts and expand its suite of structured products.

Whalee AI

The fundamental analysis assistant for crypto value investors.

Ribbon Finance NEWS REPORT

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