Decentralized Finance (DeFi) was one of the prominent segments of the cryptocurrency market in 2021 and is ready to continue the massive introduction of cryptocurrencies in 2022. This happens when institutional and individual investors welcome Finance 2.0.
A DeFi project that started the year with optimism is Ribbon Finance (RBN), a protocol that uses financial development to create structured products such as automated option strategies. It is designed to give users consistent returns over time.
Data from Cointelegraph Markets Pro and TradingView shows that since trading as low as $ 1.83 on December 30, the RBA has risen 146% and reached a daily high of $ 4.50 on January 3, with 24-hour trading volume up to 60, $ 6. . Million.
RBN / USDT 4-hour chart. Source: TradingView
Three reasons for the growth of RBN include the launch of Ribbon Finance V2, the addition of new blockchain networks to the Ribbon Finance ecosystem, and the increase in the total value recorded in the Ribbon Finance protocol.
The tape starts V2
The release of Ribbon V2 was one of the most important events that led to the price increase at RBN. The project was originally announced in August 2021, and has slowly moved liquidity and built its pools, as well as tested new features.
The updates that came with V2 focused on decentralizing tape storage. This includes the ability to let smart contracts set execution prices for options that the Treasury sells. In addition, the creation of an online auction mechanism allows everyone to participate on the other side of the store, not just the whitelisted market participants.
Stripe V2 also includes an update to the protocol store’s accounting system. This includes creating adjustable storage parameters that allow RBN owners to have a say in which storage strategy is used, and what administration and performance fees each storage needs.
These new updates should make Ribbon Finance more community-owned and also help increase the long-term profitability it offers.
Tape adds support for avalanches
The second reason for accelerating the pace of RBN development is the recent addition of Avalanche Network support (AVAX). A new call store is included with AVAX coverage where users can make AVAX deposits and earn 24.18% in revenue at the time of writing.
According to the protocol, the addition of landslide support represents “the band’s first step towards a future with more chains”, which indicates that the project has plans to add support for other networks over time.
At the time of writing, 144,320 AVAXs have been blocked on the Ribbon Finance Protocol, valued at approximately $ 15.3 million.
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Total locked value reached a new high
The third sign of Ribbon Finance’s growing strength was the total cost of the protocol, which reached a new all-time high of $ 295.96 million on January 3, according to Defi Llama.
The total cost is determined in Ribbon Finance. Source: Devi Lama
The last notable increase in TVL coincided with the addition of landslide support on 15 December 2021, and warns of the possibility of consolidating support for other networks. This may lead to more growth in the future.
In addition to the AVAX Covered Call Store, Ribbon Finance currently offers six different automated products on the Ethereum (ETH) network, including the Aave Covered Call Strategy (AAVE), the stETH Covered ETH Call Strategy and the yvUSDC Collateralized ETH Put Sell Strategy. ETH-covered call strategies, WBTC-covered call strategies and ETH’s sales and sales strategy.