Ribbon Finance is a DeFi protocol that provides various structured cryptocurrency products and investment strategies. The DeFi products Ribbon offers allow users to automate complex investment strategies using one-click deposit “vaults”. Its native token, RBN (RBN/USDT) is consolidating after making an uptrend since the start of November.
The platform also allows users to visualize their portfolio breakdowns based on real-time market conditions. Unlike other yield-farming strategies, Ribbon’s community vaults present opportunities for yield generation that are not based on higher risk speculation on token incentives but rather focus on sustainable yield generation via rolling investments in derivative options through automated vaults of user-generated funds.
Ribbon Finance’s Working
Ribbon Finance is unique in the dynamic DeFi marketplace because its vault products offer less risk and steady rewards by streamlining strategies familiar in traditional finance like derivatives, options, and safety-first covered call investments.
By doing so, the Ribbon platform makes it much simpler for users to participate in robust yield strategies developed and audited by a team of financial experts while avoiding problems that may present in DeFi’s more disruptive and emerging financial products. Ribbon’s crypto protocol uses derivatives like options to generate sustainable, risk-adjusted yield, and users can deposit their assets and let the smart contracts do the rest.
Ribbon Finance aims to simplify the complex processes of yield generation and derivatives trading by incorporating strategic options and contract execution into the platform’s native utility tokens.
What is oTokens?
Ribbon’s options writing strategies utilize Opyn, an Ethereum-based general options protocol built upon the Convexity Protocol and using utility tokens called ‘oTokens’. Owning ‘oTokens’ is equivalent to owning an options contract, and Ribbon users can use oTokens to customize their automated derivatives strategy.
This can be done by inputting specific variables such as the derivative’s time of expiration, strike price, strike asset, and whether it’s a call or put option. Users can deposit digital assets into Ribbon vaults, which automatically execute their chosen investment strategy and compound yields weekly.
Ribbon launched two primary vaults: Theta Vaults and Treasury Vaults. Theta Vaults automate covered calls, allowing investors to earn yields on their ether or wrapped bitcoin.
Treasury Vaults apply Theta Vaults to DAOs, helping them generate passive income with their own native tokens. Unlike Theta Vaults, Treasury Vaults are not available to the public and are run by their respective DAOs.
Technical Analysis and Prediction of RBN Token
The RBN chart is suggesting bullish sentiments since the start of November last year. However, when it reached the resistance level of $0.38712, the bears took over and the token price went sideways. However, the bullish investors maintained the support at the level of $0.31549. Both the buyers and the sellers confronted within the range which resulted in the sideways trend. The prediction from here for Ribbon Finance is neutral until either side breaks the trend.
Conclusion
Ribbon Finance simplifies yield generation and derivatives trading. It launched Theta Vaults and Treasury Vaults that automate covered calls. RBN, its native token, has been bullish since November 2023.
Technical Levels
- Support Levels: $0.315 and $0.271
- Resistance Levels: $0.387 and $0.4420
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2024/01/14/ribbon-finance-the-all-new-derivatives-market-of-defi/