Ribbon Finance (RBN)

Yield Generation

Ribbon Finance offers automated vaults that use options strategies like covered calls and put selling on assets such as BTC and ETH. These vaults help users earn yield by combining derivatives and lending to improve portfolio returns.

Structured Products

It provides crypto structured products that package financial instruments to achieve specific risk-return goals, such as enhancing yields or managing volatility.

Governance

Ribbon Finance has a governance token (RBN) that allows holders to vote on protocol decisions and influence the platform’s future development.

DeFi Marketplace

The platform includes Ribbon Lend, a marketplace for institutional unsecured loans, and Ribbon Treasury, which offers private vaults for DAOs to run covered calls on their native tokens.

Developer Tools

Ribbon enables developers to create custom structured products by combining various DeFi derivatives, expanding the range of financial strategies available on-chain.

Real-World Asset Tokenization

Ribbon Finance also supports tokenization of real-world assets, bridging traditional finance and DeFi, allowing users to invest in tokenized tangible assets.

For more details, visit ribbon.finance.

Pros

• Ribbon Finance offers automated, easy-to-use structured products like Theta Vaults that help users earn yield on crypto assets such as BTC and ETH by selling options.
• It simplifies complex options strategies with one-click deposits, making it accessible to users familiar with traditional finance concepts.
• The protocol uses audited smart contracts by firms like OpenZeppelin and Quantstamp, which adds a layer of trust.
• Ribbon Finance integrates with other DeFi protocols and plans to merge with Aevo, an orderbook-based options exchange, enhancing its ecosystem.
• It provides compounding yields by reinvesting premiums earned from options sales weekly.
• The platform appeals to both beginners and experienced users by automating derivatives trading and yield generation.

Cons

• The value of Ribbon Finance’s token (RBN) can be volatile, with significant price drops reported in the past.
• The protocol depends on smart contracts, which, despite audits, can have vulnerabilities.
• Users need some understanding of options and derivatives to fully benefit from the platform.
• The upcoming merger with Aevo and token swaps may create uncertainty around token value and user experience.
• The complexity of structured products might be challenging for users new to DeFi or options trading.

For more details, visit Ribbon Finance website.

Founders of Ribbon Finance

• Julian Koh: Co-founder and CEO, previously a software engineer at Coinbase. He helped start Ribbon Finance in November 2020.
• Ken Chan: Co-founder, involved in the early development and leadership of Ribbon Finance.

These two are the main founders behind Ribbon Finance.

Investors in Ribbon Finance

Ribbon Finance has raised a total of about $16.6 million over multiple funding rounds. Key investors include:

• Paradigm: A major venture capital firm that invested $8.8 million in a Series B round.
• Dragonfly Capital: A well-known crypto-focused investment firm.
• Nascent: An early-stage crypto investment firm.
• Coinbase Ventures: The investment arm of the Coinbase exchange.
• Robot Ventures: A venture capital firm investing in blockchain projects.
• DeFi Alliance: A group supporting decentralized finance startups.
• Scalar Capital: A crypto investment firm.
• Joseph Lubin: Co-founder of Ethereum and founder of ConsenSys, also an investor.
• Other investors include several smaller venture funds and angel investors.

These investors support Ribbon Finance’s mission to create structured DeFi products and help scale its protocol across multiple blockchains.

Halal Status of Ribbon Finance

• Yes or No: There is no clear, authoritative public information explicitly stating that Ribbon Finance is halal.
• Reason: Ribbon Finance operates in decentralized finance (DeFi) using derivatives, options, and structured products. These financial instruments often involve elements like speculation and interest, which can be complex to classify under Islamic finance principles. Without a specific Shariah compliance certification or ruling, it cannot be definitively labeled halal.