Ribbon uses financial engineering to create structured products that deliver sustainable yield. Ribbon's first product focuses on yield through automated options strategies. The protocol also allows developers to create arbitrary structured products through combining various DeFi derivatives.
Structured products are packaged financial instruments that use a combination of derivatives to achieve some specific risk-return objective, such as betting on volatility, enhancing yields or principal protection.
Theta Vault is a new product that automates a covered call strategy to earn high yield on ETH. The vault runs a covered call strategy and sells out of the money call options on a weekly basis for yield.
The primary risk for running this strategy is that depositors could potentially give up upside in exchange for guaranteed yield. By selling a call option, users are basically promising to sell the asset at the strike price, even if it goes above it (a.k.a selling early). Because of this, if the price of the asset moves up significantly in a short period of time, it is possible for depositors to have "negative yield" on their ETH.
However, this only happens if ETH/USD appreciates significantly, so depositors will still be up in USD terms. The vault also sells call options that are very out of the money, which means there is a relatively low chance of the options getting exercised.
## Security
The smart contracts are audited by OpenZeppelin, Peckshield, ChainSafe and Quantstamp. Despite that, users are advised to exercise caution and only risk funds they can afford to lose.
How to Buy RBN on an Exchange
Step 1: Choose a Reputable Exchange Platform
Select a trusted platform from among many available options for purchasing RBN. Some reputable platforms include HTX、Bybit、Bitget, and others.
Step 2: Register an Account
Here, we'll register an account on the Bybit(registration link) trading platform. You may need to provide personal information such as phone number and email to complete the registration process.
Step 3: Complete Identity Verification
For security purposes, some platforms may require you to complete identity verification. Follow the platform's instructions to provide necessary identity information (such as country/ID number) and undergo facial recognition. Once your identity is confirmed, you'll receive notification.
Step 4: Link Bank or Payment Method
Link your bank account or other payment methods to the exchange platform for making payments when purchasing RBN.
Step 5: Purchase RBN
Find the option to buy coins on the exchange platform, choose the C2C coin purchase process, and then input the quantity of RBN you wish to purchase. Typically, you'll choose to buy USDT first and select your preferred payment method. Simply place the order, make the payment to the seller, and you'll receive the cryptocurrency. Once payment is complete, you can use your exchange assets to buy RBN.
Step 6: Store Your RBN
After purchasing, you can choose to store your RBN in the digital wallet provided by the exchange platform or transfer it to a hardware wallet under your control.
Step 7: Security Reminder
To protect your exchange account and RBN assets, be sure to use a strong password and enable two-factor authentication.
RBN Price:Ribbon Finance is a suite of DeFi protocols that help users access crypto-structured products. By combining derivatives, lending, and its proprietary on-chain options exchange (Aevo), Ribbon aims to provide a one-stop solution for users looking to improve their portfolio risk-return profiles.The price fluctuates daily, you can go to the exchange: Bybitto check the price.
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