Today we are super excited to launch the first 2 Ribbon V2 Vaults — an ETH Covered Call Vault, and WBTC Covered Call Vault. Due to the highly experimental nature of these new vaults, we are starting with a very conservative vault capacity to begin with and expand over time.

ETH Vault Starting Capacity: 300 ETH
WBTC Vault Starting Capacity: 25 WBTC

Migrating to V2

Users who have funds in the V1 vaults will be able to migrate to V2 easily. On the Ribbon App, the vault pages will have a convenient link for users to "migrate" ETH or WBTC to the new…

Other than the Algorithmic Strike Selection, the second most significant change in Ribbon V2 is the way options are sold off. In V1, the options that the vault minted on a weekly basis were sold off to whitelisted market makers. While this worked well, one of the most common questions we received was whether people could buy the options from the vault directly. In V2, the answer is yes — option sales are permissionless, and anyone can purchase options from the vault.

Current Status Quo

In the current version of Ribbon Vaults, every week, the vaults mint a bunch of options using the…

One of the most significant improvements in Ribbon V2 is the automation of Strike Selection within the Ribbon vaults. In V1, each vault had a “manager” who would select which strike price the vault use for selling options every week. While this worked reasonably well for the 4 months that Ribbon’s vaults that have been live, we knew that the future Ribbon Vaults should strive to become fully automated, otherwise they are nothing more than a human-managed fund on-chain. This is for two main reasons:

  • Decentralization: the best way to decentralize the vaults is by removing the need for human…

Since launching the first Theta Vault on April 12, Ribbon has made significant progress:

  • Launched 4 products (ETH Covered Call, WBTC Covered Call, ETH Put Selling, Yearn ETH Put Selling)
  • Scaled vaults to $100m+ TVL
  • Cumulative >$800m of notional volume of options traded, generate the majority of on-chain options volume
  • Over $4m in yield paid out to depositors since April

Today, we are excited to announce Ribbon’s V2 protocol. This new release focuses on 3 main components:

  • Decentralization of the vaults
  • Rebuilding the vault accounting system
  • Governable vault parameters

Decentralizing the Vaults

One of the biggest issues with Ribbon V1 Vaults was the…

Today we are excited to announce a new feature: fee-less transfers between Ribbon vaults of the same asset. This makes it easy to switch between Ribbon strategies without paying the vault Exit Fee each time.

We are first enabling this feature for transfers between the T-USDC-P-ETH vault (USDC ETH Put Selling Vault) → T-YVUSDC-P-ETH (yvUSDC ETH Put Selling Vault). Users in the regular put selling vault can now transfer their assets into the Yearn put selling vault for additional yield without paying the 1% Exit Fee.

To migrate your USDC from the Put Selling vault to the Yearn Put Selling…

Ribbon executed its first Liquidity Mining program from June 18th to July 16th 2021. The main goals of this program were to:

  • Grow the metrics of the protocol (TVL, user numbers, etc.)
  • Increase distribution of RBN beyond the initial airdrop recipients
  • Experiment with RBN rewards as a way to acquire users

This post is aimed to be a retrospective on the successes/failures of the Liquidity Mining program, and dives into the data.

Key Metrics

Ribbon had 3 vaults that provided RBN incentives throughout this period:

  • ETH Covered Call Vault
  • WBTC Covered Call Vault
  • ETH Put Selling Vault

We measure two metrics for…

Today, we are excited to announce that we are doubling the vault capacity for all four Ribbon vaults. Over the last few weeks, we’ve been onboarding a few new market makers and who are able to trade with more size and at better pricing. This helps us scale the capacity of our vaults to serve the pent up demand for the Ribbon products.

Firstly, we are raising the capacity of the ETH Covered Call vault from 12,500 ETH to 25,000 ETH.

Ribbon’s first Liquidity Mining program, RGP-2, has officially concluded. Users can now unstake their vault deposit tokens and claim the RBN rewards that they have earned throughout the program.

To claim your rewards, go to our app today:

Over the next week, we will be collecting data about the success of the Liquidity Mining program (e.g number of new users, number of new RBN holders, growth in assets, etc.) and will be publishing a retrospective on the experiment. Stay tuned!

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One of the most powerful features of DeFi is composability. Users can deposit their assets in a money market like Compound, then reuse the cTokens that they get back in a different protocol. This “double dipping” of collateral is extremely powerful — it lets collateral get used in multiple places at the same time, and as a result users can stack yield from various protocols.

Today, we are announcing a new product that lets users stack Ribbon and Yearn yield at the same time: yvUSDC ETH Put Selling Vault.

On June 7th, we proposed RGP-2, Ribbon’s first Liquidity Mining Program. This proposal would distribute 1% of RBN supply to vault depositors pro rata, from June 15th to July 19th. The proposal outlined 3 main goals:

  • Grow vault TVLs
  • Expand voting power to users who missed out on the Airdrop
  • Distribute more RBN to users who continue to have skin in the game (vault depositors)

After lots of discussion and debate around the original proposal, we made a few changes to the specification of the RBN distribution. To disincentivize “mercenary farming”, the liquidity mining contract will only reward RBN to…

Ribbon Finance

Crypto structured products on Ethereum 🎀

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