ribbon-finance logo download PNG or SVG

Information about ribbon-finance

Ribbon leverages financial engineering to generate consistent returns by offering structured investment products. Its initial product primarily focuses on generating yield through automated options strategies. Moreover, the platform enables developers to create custom structured products by combining different decentralized finance (DeFi) derivatives.

Structured products refer to bundled financial instruments that employ derivatives to achieve specific risk and return objectives. These objectives may include speculating on market volatility, augmenting yields, or safeguarding principal amounts.

Among Ribbon's offerings is the Theta Vault, a novel product designed to automate a covered call strategy for generating high yield on ETH (Ethereum). This vault executes a covered call strategy by regularly selling call options with strike prices above the market value of ETH to generate yield.

Running this strategy presents a primary risk wherein depositors may potentially sacrifice potential gains in exchange for guaranteed yield. When selling call options, users essentially commit to selling the underlying asset at the strike price, even if its market value surpasses that level. Consequently, if the price of ETH appreciates significantly within a short duration, depositors may experience a "negative yield" on their ETH holdings.

However, this scenario solely arises if there is a significant appreciation in the value of ETH against the USD. In such cases, depositors will still witness gains when measuring their holdings in USD terms. Furthermore, the vault predominantly sells call options that are highly unlikely to be exercised due to their low strike prices, minimizing the likelihood of their holders executing the options.

For those who want to download the Ribbon-Finance logo, we have compiled a list of all the major cryptocurrencies in PNG and SVG format. Our collection includes logos for Bitcoin, Ethereum, Litecoin, Ripple, Dash, Monero, Zcash, and many more. All of them are available in PNG format. And if you want to show support for one of the cryptocurrencies, our collection of logos is at your disposal, including the Ribbon-Finance logo.