Ribbon Finance gains 60% after V2 launch and Avalanche integration


Decentralized Finance (DeFi) has been one of the flagship sectors of the cryptocurrency market in 2021 and is poised to continue to facilitate the massive adoption of cryptocurrency in 2022. It comes as investors institutional and retail companies embrace the emergence of finance 2.0.

One DeFi project that started the year off to a bullish start is Ribbon Finance (RBN), a protocol that uses financial engineering to create structured products such as automated options strategies. These are designed to provide users with sustainable returns over time.

Data from Cointelegraph Markets Pro and TradingView shows that since trading at a low of $ 1.83 on December 30, the price of RBN has risen 146% to a daily high of $ 4.50 on December 30. January 3 when its 24 hour trading volume hit $ 60.6. million.

RBN / USDT 4 hour chart. Source: TradingView

The launch of Ribbon Finance V2, the addition of new blockchain networks to the Ribbon Finance ecosystem, and the increase in total value locked on to the Ribbon Finance protocol are three reasons for RBN’s building momentum.

Launch of the V2 ribbon

One of the most important developments that contributed to the growth in RBN prices was the release of Ribbon V2. Originally announced in August 2021, the project slowly migrated cash and built its pools while testing new features.

The upgrades that came with V2 focused on decentralizing ribbon safes. This includes the ability to allow smart contracts to set strike prices for options sold by the vault. In addition, the creation of a chain auction mechanism allows anyone to participate from the other side of the vaults rather than being limited to whitelisted market makers.

Ribbon V2 also includes an upgrade to the protocol vault accounting system. This involves the creation of governable vault settings that allow RBN holders to have a say in determining the strategy deployed by each vault, as well as the management and performance fees required by each vault. -fort.

These new upgrades are expected to make Ribbon Finance more community owned and also help increase the long term returns offered.

Ribbon adds support for Avalanche

A second reason for RBN’s accelerating momentum is the recent addition of Avalanche Network Support (AVAX). A new AVAX Covered Call Vault is included where users can deposit AVAX and earn a 24.18% return at the time of writing.

According to the protocol, the addition of support for Avalanche “marks Ribbon’s first step into a multi-chain future,” suggesting that the project plans to continue adding support for other networks to the network. over time.

At the time of writing this article, 144,320 AVAXs are locked down to the Ribbon Finance protocol worth approximately $ 15.3 million.

Related: What future for crypto and blockchain in 2022? Experts’ response, part 3

Total locked-in value hits new high

A third sign hinting at Ribbon Finance’s growing strength was the protocol-locked total value which reached a new record high of $ 295.96 million on January 3 according to data from Defi Llama.

Total value locked to Ribbon Finance. Source: Lama Challenge

The most recent significant boost for TVL coincided with the addition of support for Avalanche on December 15, 2021, and foreshadows the possibility of integrating support for other networks. This could potentially lead to further increases in the future.

In addition to the AVAX covered call vault, Ribbon Finance currently offers six different automated products on the Ethereum (ETH) network, including an AAVE covered call strategy, a stETH guaranteed ETH covered call strategy, a yvUSDC guaranteed ETH sell sell, an ETH covered buy strategy, a WBTC covered call strategy and an ETH put sell strategy.

Ethereum based vaults on Ribbon Finance. Source: Ribbon funding

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.