# Ribbon Earn USDC Ribbon Earn USDC is an all-weather product that generates yield by purchasing [Backed IB01 $ Treasury Bond 0–1yr](https://uploads-ssl.webflow.com/622f4d1701727dc75198439a/640f24743a879f53d86468fe_bIB01%20Factsheet.pdf) tokens with an average YTM of 4.64% (as of April 10), then enhancing that by purchasing weekly at-the-money [knock-out barrier options](https://bookdown.org/maxime_debellefroid/MyBook/barrier-options.html#knock-out-options) on ETH, to get exposure to short-term volatility in the market in either direction. Depositors can get upside exposure to the crypto market and remain principal protected. Read more about the strategy [here](https://www.research.ribbon.finance/blog/introducing-ribbon-earn). #### **V2 Upgrade** We are making two key changes in the V2 upgrade: 1. **Risk-Free Rate**: Instead of sourcing funding by lending USDC open-term to market makers like Wintermute and Folkvang in V1, V2 sources funding by purchasing Backed IB01 tokens which represent ownership of the tracker certificate for the underlying [iShares $ Treasury Bond 0–1yr UCITS ETF](https://www.blackrock.com/americas-offshore/en/products/307243/ishares-treasury-bond-0-1yr-ucits-etf). 2. **ETH 10-delta Knock-Out Barrier:** Instead of maintaining fixed % knock-out barriers for the exotic option in V1, in V2 the barriers will be fixed at the 10-delta levels and thus move dynamically with volatility. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.ribbon.finance/ribbon-earn/ribbon-earn-usdc.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.