The decentralized finance (DeFi) sector is ever evolving, contributing new technologies to the blockchain network, and the crypto derivatives space is no exception. Today, Ribbon Finance, a leading structured wealth management product protocol, launched its high-performance options trading exchange Aevo on the Ethereum Network. According to the firm, users will now be able to trade ETH options on the chain, and more crypto options trading, including Bitcoin (BTC), will be added soon to the exchange.
Ribbon Finance Makes a Bullish Start
Decentralized finance (DeFi) is one of the most emerging and breakout sectors in the cryptocurrency space this year, and it seems to be widely adopted by crypto firms across the world, leading the DeFi 2.0. One of the DeFi projects that have made a bullish start this year is none other than Ribbon Finance. Ribbon protocol utilizes the financial engineering technology and integrates it with structured products such as automated options strategies. Furthermore, the infrastructure of the Ribbon protocol is designed to offer users a stable yield on digital assets over time.
Ribbon Finance has finally launched its options exchange Aevo on the Ethereum blockchain. The platform is designed on a custom Ethereum rollup which was developed by the experienced Ribbon team. Ribbon co-founder and CEO Julian Koh said, “A fork of Optimism with changes for Ribbon’s use case. Aevo will enjoy deep liquidity at launch, thanks to partnerships with fiver options-centric market makers.”
Options are financial contracts of a specific asset with a particular price and expiry period. Traders predict the future price of the asset, and according to the prediction, traders buy the ‘call option’ or sell the ‘put option.’ Options contracts are used as a hedge against the market’s volatility to generate the maximum profit from the market.
Ribbon Finance launched Aevo after releasing related products to it. Aevo will be integrated with Theta Vaults, leveraging an automated options strategy to generate the best profit for users. For example, users can make deposits of the stablecoin USDC into the T-USDC-P-ETH vault, which will display an Ethereum put-selling strategy. Elaborating on this, Koh said, “The vaults will be built on top of the exchange, giving users much more flexibility in choosing their positions or hedging them.”
Ribbon Finance Aims for a Great High
During the launch of Aevo, Koh hoped that the platform could generate over $100 million per day, but it could be less as he predicted the revenue before the crypto market crash when Ribbon’s vaults were generating $50 million per day. Nevertheless, Koh stated, “We can generate significantly more volume. By enabling traders to do much more than just sell options once a week.”
Following the recent developments, RBN is also seeing some price action in the graph. According to CoinMarketCap, RBN is currently trading near $0.28, a price jump of over 2.5% from yesterday. Ribbon Finance previously gained a 60% pump after its V2 launch and Avalanche integration. It is anticipated that Ribbon Finance will turn out to be the leading DeFi and crypto derivatives protocol following recent technologies.