Ribbon Finance To Launch Options Exchange on Ethereum By CoinEdition

Ribbon Finance To Launch Options Exchange on Ethereum

© Reuters Ribbon Finance To Launch Options Exchange on Ethereum

  • DeFi derivatives Ribbon Finance will launch Ethereum-built options exchange Aevo.
  • The first iteration will offer ETH options, with following soon after.
  • Ribbon Finance’s Theta Vaults to integrate with Aevo.

Robbin Finance has announced the launch of another structured financial product in the form of an order-book-based options exchange, Aevo. While the first iteration will only offer ETH options, other cryptocurrencies will soon follow suit, including Bitcoin.

Aevo’s platform is Ethereum-based. However, it is custom-built by the Ribbon team, enabling “deep liquidity at launch” in collaboration with fiver options-centric market creators.

Ribbon Finance Founder and CEO, Julian Koh, described Aeov as:

A fork of Optimism with changes for Ribbon’s use case.

Options allow users to guarantee a price for a particular asset in hugely volatile markets. Ribbon Finance’s Theta Vaults aligns with the same strategy by utilizing an automated options strategy to gain returns for users. For instance, Theta Vaults leverages an put-selling strategy for all stablecoin USDC deposits into the T-USDC-P-ETH vault.

During the launch, Koh predicted that Aevo could make up to $100 million in volume per day based on projected figures back in May 2022, when the vaults were actioning $50 million per day. Nevertheless, the figure might be altered now due to the current crypto crash.

Moreover, Ribbon plans to integrate the vaults with the Aevo exchange to allow users additional flexibility to choose the positions of the tokens or hedge them.

Aevo is not the only product Ribbon Finance is planning to launch. Ribbon Earn and Ribbon Lend, platforms that help users earn and lend cryptocurrencies, have already been rolled out. Ribbon Lend is currently thriving as it lends uncollateralized loans to users clearing KYC and AML processes.

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Written by Sandy Sullivan