Image source: Token Metrics
Ribbon Finance has significantly updated its range of structured finance products by taking new initiatives in the crypto space.
One of their most notable additions is an exchange that allows users to trade Ethereum options on the chain.
Recently, Ribbon Finance introduced Aevo, the company’s “high performance” options exchange.
Aevo is the first iteration of the company to offer only Ethereum-based ETH options.
However, the company is working to make other cryptocurrencies such as Bitcoin available in the coming months.
The team at Ribbon Finance built the platform on an adapted Ethereum rollup.
Julian Koh, co-founder and CEO of Ribbon Finance, describes it as “a fork of Optimism with changes for Ribbon’s use case.”
Aevo also has partnerships with market markers aimed at fiver options, so that the launch can enjoy “deep liquidity.”
The transition from the financing of the ribbon to starting an options exchange is in line with the most recent products of the company.
Theta Vault is the best-known offering from Aevo.
It uses an automated options strategy to generate income for its users.
An example of this is how users can deposit USDC stablecoins into the T-USDC-P-ETH deposit.
There, the vault uses an Ethereum put strategy.
Aevo will also integrate the safe.
“The vaults will be built on top of the exchange, giving users much more flexibility in choosing their positions or hedging them,” said Koh.
Other product ranges slated to launch
In addition to Aevo, Ribbon Finance has also launched Ribbon Earn and Ribbon Lend, two platforms that allow users to earn and borrow cryptocurrencies.
Ribbon Lend loans are unsecured and are offered to market makers who have gone through KYC and AML procedures.
Once the two platforms launch, Koh expects them to generate up to $100 million in volume per day.
However, he based his estimates on the platform’s volumes in early May, shortly before the cryptocurrency market crashed.
At the time, the vaults were processing $50 million a day.
“We can generate significantly more volume by enabling traders to do much more than just sell options once a week,” said Koh.
DeFi derivatives protocol Ribbon Finance launches options exchange on Ethereum