Updates on Ribbon Finance's Suite of Products

Since The Block’s last update on Ribbon Finance, the protocol’s scope and offerings have expanded considerably. Ribbon initially gained popularity last year, primarily as a protocol focused on structured products. Simplifying the user experience for interacting with derivatives and compacting the process into single one-click products on-chain has been one of many popular narratives in DeFi (see here or here for further exploration).

Ribbon’s decentralized options vaults (DOV) were able to offer users simple income-generating products and subsequently attracted $200 million of TVL in their first 6 months (see Figure 1 above). However, the DOV space remains severely limited by the liquidity of underlying on-chain options markets (see here for an overview), as shown in Figure 2 below.