Ribbon Finance (RBN) is a DeFi (decentralized finance) protocol that automates the yield generation process. The platform integrates a proprietary cryptocurrency, structured products, and a programmable infrastructure. As such, users can improve their ROIs and simplify their strategy by integrating Ribbon Finance.
How Does Ribbon Finance (RBN) Work
Ribbon Finance was built to leverage the security and features of the Ethereum blockchain. The network is non-custodial in nature meaning that wallets have full control over their ERC-20 tokens when using the system. They can generate yields by combining options, futures, and fixed income. The goal of the project is to improve portfolio risk-return for the average DeFi user.
What Problems Does Ribbon Finance (RBN) Solve?
There are a lot of issues that Ribbon Finance was built to help eliminate. For one, it’s designed to help users access crypto-structured products designed specifically for DeFi. Features such as farming and staking can be confusing to new DeFi users. Farming in particular requires a lot of monitoring to remain profitable. These requirements are due to the fact that yield farming pools have varying APYs and no lockup periods. Ribbon Finance helps users stay on top of their investments.
Developer Restrictions
Developer restrictions are another issue that the Ribbon Finance team wanted to help reduce. The protocol helps developers to create arbitrary structured products by combining various DeFi derivatives. This approach saves time and money while providing a new level of convenience to users.
Not Sustainable
Many DeFi protocols offer APYs that are not sustainable. Ribbon Finance enables users to get the most out of these high yield pools before they exit. The automated options strategies provide 24/7 monitoring capabilities. You never miss a return when using Ribbon Finance to stay on top of your DeFi investments.
Benefits of Ribbon Finance (RBN)
Ribbon Finance 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. Ribbon Finance users enjoy interoperability within the Ethereum structure. You can use popular DEXs, wallets, and other options.
Top Security
Security was the main concern for Ribbon Finance developers. The protocol has undergone multiple audits from recognized third parties. Both 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.
ROIs
One of the main draws for Ribbon Finance users is the ROIs. The network provides users access to advanced features to generate wealth such as the Theta Vault. This system is unique in that it was specially built to provide you with a way to earn yields on BTC, ETH, and other top-performing coins. This system integrates an automated strategy to further these returns.
Notably, Ribbon Finance pays out rewards in the RGB token. The system automatically reinvests these returns into your pool which enables you to enjoy compound rewards. Best of all, there is no risk of losing your original asset when using these vaults.
Structured Products
Structured products are financial instruments that have been packaged together to create more useful services. You can find a combination of derivatives and other options in these structured products. Structured products bring a lot of advantages to the network. For one, they enable you to bet on volatility.
Users can secure a specific risk-return objective through these unique financial tools. You can improve liquidity in the market and protect your original asset more efficiently using structured products. Best of all, these products can be automated to create a chain of profit-generating steps.
Ribbon Finance (RBN) Theta Vault
At the core of the protocol is the Theta Vault. Theta Vaults offer automated yield-focused strategies to the average user. Notably, the Theta Vault runs a covered call strategy. This approach sells out-of-the-money call options on a weekly basis for yield. Currently, users can secure 20-30% on their holdings using the feature. These rewards come in the form of RGB tokens.
RBN
RBN is the main governance token for the Ribbon Finance network. The token’s primary use is to encourage users to participate in the community governance systems of the network. RBN is a limited supply token that users stake to support their vote. The more RGB you hold and the more say you have in the network’s future developments.
veRBN
The Ribbon DAO governance system enables users to participate using RGB or vote-escrowed RBN (veRBN). veRBN is a non-standard ERC-20 implementation. The token serves a vital role in the governance system. It’s used within Governor Bravo voting system to determine each account’s voting power. Notably, users can put forth proposals regarding every aspect of the network including fee changes, voting system alterations, reward changes, and much more.
Community Governance
The Ribbon Finance community mechanism is a DAO (Decentralized Autonomous Organization). These systems eliminate all personnel from the organizational management processes and replace them with smart contracts. These protocols adhere to strict rules dictated by community votes. Interestingly, the system’s one vote method is expanded to include a weighting system based on locking RBN for veRBN tokens.
Bottom Line
The Ribbon Finance approach is exactly what the market needs. New users are eager to earn consistent low-risk returns. However, farming DeFi services and features can be confusing for these token holders. Ribbon Finance simplifies the onboarding process and helps traders to secure more returns. As such, the network serves a growing community of users. You can expect to hear more from this project as more people make the jump into the DeFi sector. For now, Ribbon Finance is positioned optimally to secure new users venturing into the market.
