Ribbon Finance (RBN)

Introduction to Ribbon Finance (RBN)

The world of DeFi is one of the cryptocurrency sector’s, if not the most, promising and oft-cited use cases. The sheer accessibility that people are granted is unparalleled, and it’s something that centralized finance simply cannot offer.

Whether it be derivatives, options, lending, earning passive income, and more, you can be sure to find some sort of financial service that will be to your liking here. And serving as gateways for users looking to engage with what the DeFi realm has to offer, you have numerous cryptocurrency exchanges or protocols.

Therefore, here, we’ll be looking at one such gateway, and that is Ribbon Finance, diving into its various services and contributions to DeFi.

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In fact, the underlying mission of Ribbon Finance is something that is not too far from what DeFi itself has the potential for, and that is to democratize access to financial products, which centralized entities have failed to accomplish in any meaningful way; instead, the barriers hurled at individuals simply looking to trade in those traditional financial instruments are so high, which is particularly the case for people in developing countries.

So, when access to these products is democratized and not made exclusive to select individuals, opportunities can be opened up for many, which they can all benefit from.

The Genesis of Ribbon Finance

If you were wondering about Ribbon Finance’s founders, they would be Julian Koh and Ken Chan, who co-founded it in November 2020. This pair co-founded the protocol so that a more structured product protocol could be provided for cryptocurrencies.

Regardless, it was in February 2021 that the protocol initially went live on Ethereum and that too during the release of ETH strangle options, which allowed people to speculate on the ETH token’s volatility.

But only two months later, in April 2021, Theta Vaults launched, i.e., the second product of Ribbon Finance, enabling users to receive yield whenever they’d be writing options on deposited tokens or other assets!

Then in May 2021, RNB launched, Ribbon Finance’s native token, finally allowing for some governance on the platform. In September 2021, Ribbon’s second iteration, i.e., V2 went live, which included new changes like changeable vault parameters, a new accounting system, and automated vaults.

But just a year later, Ribbon V3 saw its release in April 2022, and this came with new UX features, permissionless vaults, leveraged vaults, and more.

In September 2022, Ribbon Finance announced Aevo, which aimed to be this decentralized, order-book-based exchange for derivatives and options trading. The exchange launched later in April 2023.

It was only a month following its launch (May 2023) that Aevo announced the integration of perpetual futures, enabling users to acquire leveraged positions on specific cryptocurrencies.

Not only that, but Aevo’s third product, i.e., Pre-Launch Token Futures, was announced the same year in August, all of which is quite a lot done in so short a time.

In July 2023, the RNB token holders voted for a merger of Aevo and Ribbon Finance. With this, RBN tokenholders were able to exchange their RBN token holdings at a ratio of 1:1 to AEVO.

Moreover, every product and material pertaining to Ribbon Finance had been rebranded under Aevo. Then in January 2024, Aevo made the announcement that its AEVO token’s TGE had occurred but was yet to see distribution.

How Ribbon Finance Works

So are you looking to engage with Ribbon Finance’s services? Apparently, you don’t need to create an account or anything of the sort here. All you need is a cryptocurrency wallet, preferably MetaMask, and to have that connected to Ribbon Finance. Once that’s all done with, you’re all set to engage with whatever services the protocol has to offer.

However, do note that you’ll need to use some caution whenever you trade here or on any other exchange, especially if you’re using leverage.

Do not, by any means, spend more than you can afford to lose, as the risks of trading here are pretty much similar to trading on any other cryptocurrency exchange. One wrong trade and all that your cryptocurrencies are worth can be lost in minutes.

The Core Mechanism of Ribbon Finance

Well, those “structured products” of Ribbon Finance might have definitely caught your attention at some point, as they’re a part of what makes it unique, and if that’s the case, then look no further, as we’ll cover that here.

Simply put, structured products are just pre-packaged investments typically involving assets blended with multiple derivatives. They’re usually connected to a basket filled with various securities or an index of sorts, and can be tailored to meet certain risk-return goals.

Rather than traditional payment features such as final principal and periodic coupons, such products use non-traditional payoffs that are derived from how underlying assets perform instead of issuers’ cash flows.

Ribbon Finance’s Products and Services

However, structured products aren’t the only thing that Ribbon Finance has going for it, there’s a ton more. You have the aforementioned Theta Vaults.

Theta Vaults basically deploy an approach akin to automated European options selling, producing weekly yields through collecting premiums and writing out-of-the-money options.

“Vaults” here signifies the depositing of one’s assets and receiving yield because of them. So with Theta Vaults, you’re depositing your assets, and a certain option strategy will automatically be executed by the vaults.

With this approach, gas issues can be mitigated since gas expenses are spread throughout every vault depositor, making for quite a cost-effective and streamlined user experience.

Furthermore, Theta Vaults provides its users with a feature called pause and resume, enabling them to select when they want to participate in weekly strategies depending on their market anticipations, which grants more flexibility overall.

Besides Theta Vaults, there’s Ribbon Earn and Ribbon Lend, which are quite self-explanatory. There’s Ribbon Treasury too, which introduces these specialized Ribbon Theta Vaults made for DAOs to carry out covered calls on native tokens.

RBN Tokenomics

Like any other cryptocurrency protocol or network, Ribbon Finance has its own native token, as we mentioned earlier, and this is a pretty standard governance token that has some use as a medium of exchange for services or other tokens.

As for the initial token distribution, 49% of it has been allocated to the community treasury, 23% to current and future team, 15% to current investors, 8% to corporate property, 3% to retroactive airdrop recipients, 1% to liquidity mining participants, and 1% to initial market makers. 

Moving on to other figures, it’s currently valued at around $1.20, with a market capitalization and fully diluted valuation both over $1.1 billion.

The total and maximum supply are both exactly at 1 billion tokens, and its circulating supply is more than 967.6 million tokens. As for its daily trading volume, that would be more than $9.8 million.

Acquiring and Storing RBN Tokens

Looking to get some RNB tokens now that you’re interested in what Ribbon Finance has to provide? Well, you won’t have that hard of a time finding a place that sells these tokens, as it’s listed on quite a few popular exchanges like Coinbase, Bitget, or you can just buy it from Ribbon Finance itself, which will probably be the easiest way for you to get some, as other exchanges will probably require some registration procedures and even KYC, which doesn’t seem to be the case here.

Still, once you have them, consider some storage options, probably cold or hardware wallets, where your funds will be safe from the numerous threats lurking on the interwebs.

Market Performance and Analysis of RBN

As for how the token has been performing lately, it is doing quite well, especially when compared to the slump it was stuck in for so long, unable to even break the $0.5 mark. Still, it has a long way to go if it is to reach its all-time high of around $5.50.

Compared to how other tokens are growing in value, it may be a bit lacking, as a lot of them have seen some really astronomical gains lately, like BGB and WIF, among various others.

Challenges and Opportunities for Ribbon Finance

While Ribbon Finance has been experiencing some growth lately in the number of users using it, what one shouldn’t forget is that it is operating within a vastly competitive space, and those numbers can just as easily fall flat.

Also, the whole options market is quite niche and remains fairly complex to get into, which could hinder adoption rates. Moreover, the fact that it’s based on Ethereum implies that it could face some issues pertaining to scalability every now and then, as Ethereum hasn’t managed to be scalable yet.

But despite all that, the opportunities are very much there too, as it’s the first structured products cryptocurrency protocol on Ethereum, and that’s saying something.

There is still room to grow and considering its past releases, it’s safe to assume that Ribbon won’t ignore that.

Conclusion: The Strategic Position of Ribbon Finance in DeFi

Due to Ribbon Finance’s position being the first of its kind on the largest dApp platform in the world, i.e., Ethereum, it has acquired a rather strategic position for itself within the world of DeFi, having quite a number of services under its belt that are sure to catch any cryptocurrency enthusiast’s attention.

We Coin-Labs.com provides only objective information about Ribbon Finance (RBN).
Therefore, we are not responsible for the investment decision in Ribbon Finance (RBN) and the resulting loss.

Ribbon Finance (RBN) Basics

Here are some factors that investors should consider before investing in Ribbon Finance (RBN).

Cryptocurrency Features	Ribbon Finance (RBN) ()
Publisher or Developers
Headquarters (Registration Number)
Symbol
Platform
Published Date (CMC Registration)	2024-10-02
Max Supply	958,691,258,152,859

Reliability Score of Ribbon Finance (RBN) in 2024

These are indexes mesuring the investment reliability of Ribbon Finance (RBN) conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 0 Exchanges
Number of Available Pairs Worldwide	1 Pairs
Market Cap of the Cryptocurrency	6,683,329 USD (Rank #1295)

The table above shows the result of investment suitability evaluation for Ribbon Finance (RBN).
Check out how we evaluate cryptocurrencies on the crypto rating description page.

Ribbon Finance (RBN) Price

Here are the price and recent trading volume of Ribbon Finance (RBN). (Data of 2024-10-03 00:15:00)

Price Items	Price and Trading Volume of Ribbon Finance (RBN)
Ribbon Finance (RBN) Price	0.000 USD
Price Change 24h	-5.48%
Price Change 7d	-4.99%
Trading Volume 24h	11 USD
Trading Volume Change 24h	-82.47%

Cryptocurrency Metadata

You can check the development status and social media information of Ribbon Finance (RBN) through the links in the table below.

Metadata Source	URL
🌎 Official Website
📖 White Paper
🛰️ Source Code (GitHub)
🐦 Twitter
🤖 Reddit
🎺 Message Board

Where to Buy Ribbon Finance (RBN)

Here are the top ten world crypto exchanges where traders can buy Ribbon Finance (RBN) in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Not listed
Coinbase	Not listed
Kraken	Not listed
KuCoin	Not listed
Bitfinex	Not listed
OKX	Not listed
Huobi	Not listed
Bitstamp	Not listed
Bybit	Not listed
Gate.io	Not listed

Frequently Asked Questions