About Ribbon Finance (RBN)

Ribbon Finance is a decentralized finance (DeFi) protocol that automates the yield generation process. Users can boost their investment returns while simplifying their overall yield farming activities by way of Ribbon's automated option selling strategies, generating revenue from the premium gained from selling options (The Defiant).

"Farming and staking can be confusing to new DeFi users," Securities.io said. "Farming in particular requires a lot of monitoring to remain profitable. Ribbon Finance helps users stay on top of their investments."

Originally announced in August of 2021, Ribbon V2 focused on the decentralization of Ribbon's "vaults."

Ribbon, per Cryptopedia, had earlier launched with two primary vaults: Theta Vaults, Ribbon's main offering, allowing investors to automate relatively lower-risk "covered call" strategies which can earn significant yields on ETH or wBTC; and Treasury Vaults, taking Theta Vaults' premise and applying it to decentralized autonomous organizations (DAOs).

"Treasury Vaults can benefit DAOs that would like to leverage existing assets," Gemini said.

The core vault runs a covered call strategy and reinvests yield earned back into the vault, compounding depositor yields over time.

"Anyone is free to participate in a Theta Vault for the chance to generate continual, passive income," Cryptopedia said.

"Users just deposit their assets and let the smart contracts do the rest."

The protocol currently runs on Ethereum mainnet, Avalanche and Solana.

When was RBN created and how much was it worth?

Ribbon was cofounded by Julian Koh, who is a former Coinbase software engineer, according to LinkedIn. He was at the exchange as recently as October of 2020. The project was announced in February 2021, according to a Medium post by the team.

Koh currently holds the title of CEO at Ribbon.

RBN was airdropped to early community supporters in May of 2021. By the autumn of 2021, RBN reached its all-time high of $5.54.

How is the price of RBN determined?

The total supply of RBN is fixed at 1 billion. About 310 million RBNs are currently in circulation, according to CoinGecko. The token’s primary use is for governance. As mentioned, RBN is in limited supply.

Why does RBN have value?

To support and expand their voting rights, users stake RBN. The more that is held, and the more sway users have in controlling the network’s future developments. RBN holders can lock their assets and in return be able to vote which vaults get higher token distributions, as The Defiant explained.

Is RBN secure?

Security was a chief concern for Ribbon developers, according to Securities.io. The protocol has undergone multiple audits from recognized third parties. OpenZeppelin and ChainSafe have reviewed the network’s smart contracts and lending pool protocols. Additionally, the open-source nature of the product means that anyone in the Ethereum community can review the system to ensure everything is up to par, Securities.io added.

Ribbon is audited by OpenZeppelin, ChainSafe and Peckshield, the project said.

What are the main benefits of RBN?

•  By integrating Ribbon, users can simplify and keep track of their yield farming activities.
•  Cryptopedia pointed out the merits of Ribbon’s vaults which focus on sustainable yield generation via rolling investments in options.
•  According to Securities.io, Ribbon was the first platform to offer crypto structured products protocols on the Ethereum blockchain. "Ethereum is the top-performing DeFi and dApp ecosystem in the market," the website said. "Ribbon Finance users enjoy interoperability within the Ethereum structure. You can use popular DEXs, wallets, and other options."
•  It allows regular investors to run an automated options strategy for harvesting sizable yield all with one click.

What do critics say about RBN?

Ribbon has traded on low volume recently, InvestorsObserver said. "With support set around $0.14 and resistance at $0.21,” the website noted, “RBN is potentially in a volatile position if the rally burns out."