Ribbon Finance takes a chance at the crypto space with its crypto exchange platform

Leah Cooper on October 13, 2022

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.

Aevo

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.”

Exchange options

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.

Reference:

DeFi derivatives protocol Ribbon Finance launches options exchange on Ethereum

Alex Mashinsky officially steps down after sending the Celsius Board of Directors his resignation letter

Leah Cooper on October 3, 2022

On September 27, 2022, Celsius CEO Alex Mashinsky stepped down and expressed regret for his role in the bankrupt cryptocurrency lending company.

Mashinsky said his time at the company as an executive has resulted in “increasing distractions.”

The resignation letter

A New York law firm announced on Tuesday that Alex Mashinsky had filed his “I have decided to step down as CEO of Celsius Network today,” the statement said.

“I elected to resign my post as CEO of Celsius Network today,” the statement reads.

“Nevertheless, I will continue to maintain my focus on working to help the community united behind a plan that provide the best outcome for all creditors – which is what I have been doing since the company filed for bankruptcy.”

“I believe we all will get more if Celsians stay united and help the UCC with the best recovery plan.”

“I remain willing and available to continue to work with the Company and their advisors to achieve a successful reorganization.”

In the letter, Mashinsky regretted the distraction his presence as CEO had brought to the company.

“I am very sorry about the difficult financial circumstances members of our community are facing.”

Alex Mashinsky was allegedly responsible for Celsius’ poor trading in early 2022, which later led to the cryptocurrency issuer’s bankruptcy.

Celsius and the rise in bankruptcy

In 2022, several cryptocurrency lenders witnessed the freezing of user withdrawals following the crash of the cryptocurrency markets in May.

Celsius was one of the first major cryptocurrency lenders to launch withdrawal and payment blocking.

Weeks of silence followed before Celsius filed for bankruptcy.

During the bankruptcy filing, the company announced that it had a $1.2 billion gap on its balance sheet.

On-chain data showed that Celsius quickly repaid the funds through several DeFi loans before filing for bankruptcy.

It turns out that this move was an attempt to avoid liquidating over $40 million in Bitcoin collateral.

Celsius eventually repaid the entire loan and got the money back.

Subsequent company operations and allegations

After repaying the loans, Celsius was allowed to sell the mined bitcoins to pay for its operations.

July data shows that the company’s business posted losses.

However, a New York judge ruled the decision would benefit investors.

Earlier this month, Vermont officials claimed Celsius had been unable to pay its debt since 2019.

Officials also claimed that Alex Mashinsky made false and misleading claims to exaggerate Celsius’ financial health.

Reference:

CEO of bankrupt crypto lender Celsius Alex Mashinsky resigns