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Ribbon Finance has made significant updates to a range of structured finance products.
One of their most notable additions is an exchange that allows users to trade Ethereum options on the chain.
Aevo
Today, Ribbon Finance unveiled 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 ensure that other cryptocurrencies such as Bitcoin are also 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 change optimism 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”.
Options exchange
Ribbon Finance’s move to launch an options exchange is in line with the company’s latest products.
Theta Vaults 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 deposit. There, the vault uses an Ethereum put strategy.
Aevo will also integrate vaults.
“The vaults will be built on top of the exchange, giving users much more flexibility in choosing their positions or hedging them,” said Koh.
Other sets of products slated for a launch
Besides Aevo, Ribbon Finance has also launched Ribbon Earn and Ribbon Lend, two platforms that allow users to earn and lend cryptocurrencies.
Loans from Ribbon Lend are unsecured and are offered to market makers who have gone through KYC and AML procedures.
Once the products are launched, Koh expects they will generate up to $100 million in volume per day.
However, he based his estimates on the platform’s volume figures in early May, just before the cryptocurrency market crashed.
At the time, 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.
Reference:
DeFi derivatives protocol Ribbon Finance launches options exchange on Ethereum
