Ribbon Finance has significantly updated its structured finance product offering by taking new ventures into the crypto space.
One of their most notable additions is an exchange that allows users to trade Ethereum options on-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 like Bitcoin available in the coming months.
The Ribbon team built the platform on a custom Ethereum rollup.
Julian Koh, co-founder and CEO of Ribbon Finance, describes it as “a fork of optimism with changes for the Ribbon use case”.
Aevo also has partnerships with market makers focused on the five options so that the launch can enjoy “deep liquidity.”
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Ribbon Finance’s move to launch an options exchange is in line with the company’s latest products.
Theta Vault is Aevo’s best-known offering.
It uses an automated options strategy to generate revenue for its users.
An example of this is how users can deposit USDC stablecoins into the T-USDC-P-ETH vault.
There, the vault uses an Ethereum put strategy.
Aevo will also integrate the vault.
“The vaults will be built on top of the exchange, giving users much more flexibility in choosing their positions or hedging them,” said Koh.
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Other product ranges planned for launch
In addition to Aevo, Ribbon Finance has also launched Ribbon Earn and Ribbon Lend, two platforms that allow users to earn and lend cryptocurrencies.
Ribbon Lend Loans are unsecured and offered to market makers who have followed the 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, a little 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