Ribbon Finance Report by Jesse

A new all-time high for Bitcoin, and it’s all thanks to the bankers’ infinite money supply glitch. Falling shy of $68k and maintaining above $60k the week has played out tremendously for this level of price discovery. While Bitcoin cooled off a bit after its initial run, several projects including Secret, Thorchain, Curve, Safemoon, Nexo, Okex, Near and Harmony gained 50%+ in the process. It’s great to see Ethereum has also seized this opportunity to find a new all-time high while Bitcoin figures out what it wants to do next. This week we’ll be reviewing a new DeFi option calling platform called Ribbon Finance.

Introduction

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. Helping to create structured products that deliver sustainable yield using financial engineering for DeFi. Ribbon Finance offers several new products for users to incorporate into their investment strategies. Theta Vaults offer a yield-focused strategy on ETH, USDC, yvUSDC, and WBTC. The vault earns yield on its deposits by running a weekly automated options selling strategy. The vault then reinvests the yield earned back into the strategy, compounding greater yields for depositors over time. Currently, funds held in Theta Vaults do not generate any yield, aside from writing options. Every Friday, the vault converts 100% of the balance of its assets into yvUSDC by depositing USDC into the Yearn USDC yVault. This helps depositors gain exposure to the yield generated from Yearn on top of the options strategy. Users can deposit their assets into a smart contract and it will start running a specific options strategy. This also helps reduce a majority of the gas