Ribbon Finance (RBN) is an Ethereum token that governs Ribbon Finance, a decentralized finance protocol designed to generate yield by combining options, futures, and fixed income to improve a portfolio’s risk-return profile. RBN is the protocol’s governance token and can be used to propose and vote on the future of the platform.
What is Ribbon Finance?Ribbon Finance is a new protocol that creates crypto structured products for DeFi.Does Ribbon have a token?
Yes, we have a token. You can find more information about the $RBN Airdrop in the blog post. Be aware that there are scammers that have created fake Ribbon tokens and are actively distributing them on DEXes. Do not buy them. Official RBN address: 0x6123B0049F904d730dB3C36a31167D9d4121fA6B.What are structured products?Structured products are packaged financial instruments that use a combination of derivatives to achieve some specific risk-return objective, such as betting on volatility, enhancing yields or principal protection.What kinds of structured products does Ribbon have?Ribbon currently offers a high yield product on ETH which generates yield through an automated option strategy. Ribbon will continue to expand the product offerings over time, including community-generated structured products.What is the Theta Vault?
Theta Vault is a new product that automates a covered call strategy to earn high yield on ETH. The vault runs a covered call strategy and sells out of the money call options on a weekly basis for yield. You can read more about the strategy here.What Options Protocol does the Theta Vault use?Theta Vault currently uses Opyn’s infrastructure to mint and trade the options tokens on-chain. We chose Opyn because the protocol lets us create tokenized ETH options with custom parameters out of the box. This allows us to be flexible on the choice of strikes, expiries, and exchange method. What is the expected yield for the Theta Vault?
The yield is variable, but we expect it to be in the 20-30% range. We performed a backtest on the strategy throughout 2020 and 2021, and you can see the results here.
The yield in production will likely be lower due to transaction costs and so on, but we can expect something in the double-digit APY range.What are the risks of the Theta Vault?
The primary risk for running this strategy is that depositors could potentially give up upside in exchange for guaranteed yield. By selling a call option, users are basically promising to sell the asset at the strike price, even if it goes above it (a.k.a selling early). Because of this, if the price of the asset moves up significantly in a short period of time, it is possible for depositors to have “negative yield” on their ETH.
However, this only happens if ETH/USD appreciates significantly, so depositors will still be up in USD terms. The vault also sells call options that are very out of the money, which means there is a relatively low chance of the options getting exercised.
The smart contracts are audited by Peckshield, ChainSafe and Quantstamp. Despite that, users are advised to exercise caution and only risk funds they can afford to lose. Why do I need to give Theta Vaults approval to spend my assets?
On the Ethereum blockchain, wallets have full control over their ERC20 tokens. In order to let an application spend a wallet’s tokens, the user has to explicitly give permission to the application to spend them. This is what’s called an ERC20 allowance. Theta Vaults prompt users to approve an unlimited amount so that users do not have to re-approve the application on a subsequent deposit.
Which products support RBN?
| Send/Receive | Trading | |
|---|---|---|
| Coinbase | ✔ | ✔ |
| Pro | ✔ | ✔ |
| Wallet | ✔ | ✖️ |
What regions support RBN?
| US | NY | CAN | EU | UK | DE | SG | JP | |
|---|---|---|---|---|---|---|---|---|
| Coinbase | ✖️ | ✖️ | ✖️ | ✖️ | ✖️ | ✖️ | ✖️ | ✖️ |
| Pro | ✔ | TBD | ✔ | ✔ | ✔ | ✖️ | ✖️ | ✖️ |
| Wallet | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✖️ |
Crypto to fiat trading pairs
| US | UK | EU | |
|---|---|---|---|
| USD | ✔ | ✖️ | ✖️ |
| GBP | ✖️ | ✖️ | ✖️ |
| EUR | ✖️ | ✖️ | ✖️ |
Note: Coinbase Wallet does not support direct bank transactions. You’ll need to transfer your crypto to Coinbase.com or send it to an external address in order to cash out.
Crypto to crypto trading pairs
| USDC | BTC | ETH | USDT | |
|---|---|---|---|---|
| RBN | ✖️ | ✖️ | ✖️ | ✖️ |
See the full list of countries that Coinbase supports for crypto-to-crypto trading.
Note: Only assets hosted on the Ethereum blockchain can be converted through the Coinbase Wallet mobile app at this time. Learn more about trading on Coinbase Wallet.
How many confirmations are needed for RBN?
RBN requires 35 network confirmations. Learn about transaction confirmations.
Which blockchain network hosts RBN?
RBN is hosted on Ethereum.
What are the minimum and maximum withdrawal amounts?
Coinbase has implemented safeguards to ensure a healthy and efficient network both on-chain and through our platform.
These safeguards include both minimum and maximum amounts for each cryptocurrency we allow customers to send through the blockchain. These amounts vary by asset and are subject to change.
By Ribbon Finance and Coinbase