Ribbon Finance (RBN) is a decentralized finance (DeFi) protocol that strives to provide users with access to structured financial products in the cryptocurrency space. It employs financial engineering to create these products, which are designed to deliver sustainable compensation. Ribbon's initial product focuses on compensation through automated options strategies. The protocol also allows developers to create structured products by combining various DeFi derivatives. Ribbon Finance's structured products are packaged financial instruments that use a combination of derivatives to achieve specific risk-return objectives.

Ribbon Finance operates through a series of products and strategies. One of its key offerings is the Theta Vault, which automates a covered call strategy to generate high compensation on Ethereum (ETH). The vault sells out-of-the-money call options on a weekly basis for compensation. Ribbon Finance also offers Ribbon Earn, a line of compensation vaults designed to have a risk profile complementary to Theta vaults. It uses a combination of lending and exotic options to enhance compensation through exposure to short-term volatility in the market. Ribbon Finance also includes Ribbon Lend, a DeFi marketplace for institutional unsecured loans, and Ribbon Treasury, private Ribbon Theta vaults built specifically for Decentralized Autonomous Organizations (DAOs) to run covered calls on their native tokens.

Ribbon Finance seeks to provide users with a range of potential use cases. It aims to offer a one-stop solution for users who want to improve a portfolio's risk-return profile. Users can deposit their assets into Ribbon's vaults, which then automatically start running specific option strategies. This can help users receive compensation from their assets. Ribbon Finance also aims to provide DAOs with a way to run covered calls on their native tokens, potentially enhancing their treasury diversification goals. Furthermore, Ribbon Finance's structured products can be used by those who want to bet on volatility, enhance compensation, or protect their principal.

Ribbon Finance was launched in 2021 with the invention of Theta Vaults, also known as DeFi Options Vaults (DOVs). These were designed as compensation-oriented strategies that propose that depositors trade volatility on their underlying assets by selling European options with weekly expiration. The sale value of these options, or "premium," is set through auctions and determines the vault return. The vault reinvests the premiums received back into the strategy, effectively compounding them for depositors over time. Ribbon Finance's smart contracts have been reviewed by OpenZeppelin, Peckshield, ChainSafe, and Quantstamp.

Ribbon Finance (RBN) utilizes one-click allocation 'vaults' to automate intricate asset management strategies and visualize portfolio changes based on real-time market conditions. Ribbon's DeFi products do not rely on higher risk speculation on token incentives, but rather focus on sustainable reward generation via rolling allocations in derivative options through automated vaults. Ribbon Finance's options writing strategies utilize Opyn, an Ethereum-based general options protocol that uses utility tokens called oTokens. Users can customize their automated derivatives strategy by inputting specific variables such as the derivative’s time of expiration, strike price, strike asset, and whether it’s a call or put option. Users allocate digital assets into Ribbon vaults, which automatically use the assets to execute their chosen asset management strategy, with rewards accumulated weekly.

Ribbon Finance seeks to implement automated options strategies with the intention of maintaining consistent non-monetary rewards. The platform's Theta Vaults, for instance, run two options strategies with the intention of accumulating non-monetary benefits for participants over time. Ribbon Finance aims to offer structured products that allow users to participate in volatility-based activities to achieve a specific risk-reward goal. These products can be automated to create a sequence of activities aimed at generating non-monetary rewards. Ribbon Finance's non-custodial nature aims to provide users with full control over their ERC-20 tokens, with the intention of mitigating potential asset loss.

Ribbon Finance is a decentralized finance protocol that offers structured crypto products and financial strategies. It uses smart contracts to automate various options strategies, providing users with a simplified way to engage in these strategies. The platform offers four main strategies, represented by Theta Vaults. These include a strategy focused on Ethereum (ETH) and Wrapped Bitcoin (WBTC) called a Theta Vault, which runs a covered call strategy. This strategy receives non-monetary rewards on a weekly basis by writing out-of-the-money covered calls and receiving non-financial incentives. Another strategy is the put selling strategy, which provides non-financial incentives by selling weekly ETH put options. Ribbon Finance has introduced Meta Vaults, which will allow users to build on top of a base of covered call and put-selling vaults. Ribbon Finance aims to offer a variety of option vaults based on various token and financial strategies.

Ribbon Finance enables users to create and manage options strategies on various cryptocurrencies, with the intention of assisting users in mitigating their positions and generating non-monetary rewards in the volatile cryptocurrency market. Ribbon Finance provides a user-friendly interface and a broad range of options strategies to select from. Ribbon Finance leverages smart contracts to ensure the transparency of transactions, while offering a user-friendly interface and a wide range of options strategies. Ribbon Finance seeks to offer a variety of tools for cryptocurrency holders, allowing them to create custom options strategies to protect their holdings and optimize their strategy. Whether users aim to mitigate price volatility or receive non-monetary rewards, Ribbon Finance seeks to offer the tools and strategies that may be useful.

Ribbon Finance contributes to the composability of DeFi protocols and interoperability within the ecosystem by enabling seamless integration of diverse applications and functionalities. This is achieved through the use of smart contracts, interoperability and token standards, lending and borrowing protocols, APIs, and SDKs. Ribbon Finance's Theta Vault, for instance, operates a covered call strategy and also lends out the underlying collateral on another protocol to facilitate non-financial incentives. This dual functionality aims to enhance the utility of assets across multiple applications, and in turn, strives to facilitate efficiency and liquidity. In addition, Ribbon Finance's collaboration with Ante Finance allows for on-chain tests that verify key assumptions like protocol solvency and multisig balances, aiming to facilitate trust and safer DeFi protocol interoperability.

Ribbon Finance has established several strategic partnerships to support its operations and capabilities. One of its key partnerships is with Paradigm, a venture capital firm. This partnership aims to build new risk products native to decentralized finance (DeFi) and scale the Ribbon Finance protocol. Another noteworthy partnership is with Zeta Markets, an under-collateralized derivatives platform. This collaboration aims to develop structured products on the Solana blockchain, marking Ribbon Finance's entry into the Solana ecosystem. Ribbon Finance has also partnered with Credora, a credit evaluation platform, to facilitate data-driven lending for Ribbon on the participating Market Makers within their Earn Vaults. Lastly, Ribbon Finance has introduced Aevo, an on-chain platform for trading altcoins with institutional-grade liquidity providers, including Galaxy, GSR, and Orbit. These partnerships demonstrate Ribbon Finance's commitment to expanding its capabilities and developing its services in the DeFi space.

RBN, the native token of Ribbon Finance, has a significant role in the governance of the platform. It provides token holders with the ability to vote on governance proposals, which can influence the project's direction. The quantity of RBN a user stakes is directly proportional to their voting power, which can affect the platform's policies and parameters. Staking RBN may also enhance the non-monetary benefits a user receives on their staked vault tokens. This system strives to establish a correlation between the performance of the Ribbon Finance platform and the RBN token, fostering long-term support. Moreover, RBN stakers have the option to delegate their benefits to other users, promoting a more flexible governance system.

Ribbon Finance strives to address the challenges related to the pricing and execution of options in DeFi by simplifying participation in complex structured products. It employs a combination of derivatives to achieve specific risk-return objectives, such as betting on volatility, enhancing potential non-monetary rewards, or principal protection. Users may allocate digital assets to Ribbon's vaults, which automatically utilize the assets for a covered call or covered put strategy and process the non-monetary rewards weekly. The vault uses the allocated collateral to mint options from Opyn and then sells them to a market maker to collect non-financial incentives. As long as the options expire outside of the money, the vault uses these non-financial incentives for the next week as its algorithm selects a new strike price and non-financial incentives are processed. Ribbon Finance's approach to addressing these challenges is designed to make it easier for users to participate in strategies with potential non-monetary rewards that have been reviewed by a team with financial expertise.

Ribbon Finance has implemented several risk management features that aim to manage user funds. One of these features is the use of structured products. These are financial instruments packaged together to create more efficient services. These structured products provide users with the opportunity to engage with volatility and manage specific risk-return objectives. They also aim to manage liquidity in the market and the original asset. Ribbon Finance also utilizes a system known as Theta Vault. This system implements automated yield-focused strategies for users. It integrates an automated strategy to manage these outcomes, with the intention of reducing the risk of loss. Ribbon Finance has undergone multiple audits from third parties, with the aim of enhancing the security of its protocol. The open-source nature of the product allows anyone in the Ethereum community to review the system, which contributes to its security.

Ribbon Finance's contracts are audited by firms such as OpenZeppelin, ChainSafe, and Peckshield. Despite these audits and security measures, Ribbon Finance advises users to exercise caution and not to risk funds they are not willing to lose. Ribbon Finance has an ongoing bug bounty on ImmuneFi, acknowledging the identification of potential security vulnerabilities with non-monetary recognition. This demonstrates Ribbon Finance's commitment to upholding a cautious approach towards its users' environment.