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Ribbon Finance is a protocol designed to let users tap into crypto structured products for DeFi. It brings together options, futures, and fixed income to help shape a portfolio’s risk and return. Using financial engineering, Ribbon creates structured products aimed at delivering ongoing yield. Its initial offering centers on yield via automated options techniques. The protocol also enables developers to assemble custom structured products by combining different DeFi derivatives.
Core Products of Ribbon Finance:
Theta Vault. Theta Vault runs a yield-oriented approach on ETH and WBTC. It generates returns from deposits by carrying out a weekly automated options selling program. The strategy reinvests the yield it earns back into the same approach, allowing depositors’ returns to compound over time. At present, the only yield Theta Vault assets generate comes from option writing. Each Friday, the vault converts 100% of its USDC holdings into yvUSDC by placing USDC into the Yearn USDC yVault. This gives depositors additional exposure to the yield produced by Yearn alongside the options strategy.On July 2023, a governance vote occurred that approved RGP-33, a proposal supporting Ribbon’s integration into Aevo. The near-unanimous outcome reflects how closely stakeholder goals aligned with the Aevo team’s roadmap.
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