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.
The primary risk for running a covered-call strategy is that depositors could potentially give up upside in exchange for guaranteed yield. By selling a call option users are essentially promising to sell the asset at the strike price even if the price rises. This may result in a negative yield on the underlying asset. However, in that case depositors will still be up in USD terms, as the underlying asset would have appreciated significantly in a short period of time.
The primary risk for running a put-selling strategy is that the vault may incur a weekly loss in the case where the put options sold by the vault expire in-the-money (meaning the price of the underlying asset is below the strike price of the put options minted by the vault).
Ribbon options are built on the Opyn V2 protocol, even on Avax.
We're currently on Ethereum mainnet, Avalanche, and Solana. There are currently no plans to expand to further chains.
Yes, Ribbon has a governance token, RBN. Please read the RBN announcement blog post for more details. The RBN token is 0x6123B0049F904d730dB3C36a31167D9d4121fA6B.
Here's the address. The Treasury is managed by a multisig made by the Team with two members of the core community.
We're audited by OpenZeppelin, ChainSafe and Peckshield. Despite that, users are advised to exercise caution and only risk funds they can afford to lose.