Ribbon Finance is a new protocol that creates crypto structured products for DeFi. It combines options, futures, and fixed income to improve a portfolio’s risk-return profile. They are building on-chain option vaults that use smart contracts to automate various options strategies. Users can deposit their assets into a smart contract and will automatically start running a specific options strategy.
The first project Ribbon built is called Theta Vault which is an Yield generating strategy on ETH. Theta vault runs a covered call strategy which earns yield on a weekly basis through writing out of the money covered calls and collecting premiums. Theta Vault currently uses Opyn’s infrastructure to mint and trade the option tokens on-chain. Ribbon finance don't have a token yet.