Introducing Ribbon V2

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

Decentralizing the Vaults

  • Strike selection: instead of having a human decide the strike prices for the options that the vault sells, a smart contract should be able to do it instead.
  • Option sales: instead of working with whitelisted market makers to sell the options that the vault creates, we can use an on-chain auction mechanism that allows anyone to participate on the opposite side of the vaults.

Rebuilding the Vault Accounting System

  • Depositors do not suffer the loss of previous week’s short position
  • 100% utilization of vault funds instead of 90%, increasing yields
  • No early withdrawals, all withdrawals can only happen after option expiry, making it fair for all vault depositors

Governable Vault Parameters

Migration to V2

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