Image source: Token Metrics
Ribbon Finance has made significant updates to a series of structured financial products.
One of their most prominent additions is an exchange with which users can exchange Ethereum options on the chain.
Today, Ribbon Finance introduced Aevo, the company’s “high performance” options.
Aevo is the first iteration of the company that offers only ETH options built on Ethereum.
However, the company is working to ensure that other cryptocurrencies such as Bitcoin are also available in the coming months.
The Ribbon team created the platform on a custom Ethereum rollup.
Julian Koh, co-founder and CEO of Ribbon Finance, describes it as “a fork of Optimism with changes for Ribbon’s use case.”
Aevo also has partnerships with market makers oriented to the Fiver options, so that the launch can enjoy “deep liquidity.”
Ribbon Finance’s move to launch an options exchange ties into 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 sales strategy.
Aevo will also integrate the 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 product set 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 made through Ribbon Lend are unsecured and are offered to market makers who have gone through KYC and AML procedures.
Once the products launch, Koh predicts they will generate up to $100 million in volume per day.
However, he based his estimates on the platform’s volume figures from early May, just before the crypto market crashed.
At the time, vaults were processing $50 million a day.
“We can generate significantly more volume by allowing traders to do more than just sell options once a week,” said Koh.