00:00Welcome back to Decentralized News. In today's video we are looking at Ribbon Finance. So Ribbon
00:05Finance is a project that has a token with the ticker RBN. You can find it available on different
00:12cryptocurrency exchanges including BitGit, BTCXMEXC, GetIOXT.com and others all of which you can find
00:23reviews of these platforms on our main site Decentralized.News. Make sure you head on over
00:29there. If you also want just to know more about DeFi platforms, NFT platforms or marketplaces and
00:35just get honest reviews about these cryptocurrency exchanges so you don't end up one of those people
00:40who's got funds stuck on an exchange that you could have easily seen that they are warning signs
00:46of their impending doom. Check out Decentralized.News. Also check out our Telegram and our Discord server.
00:54Ribbon Finance is what we're talking about today. It is said that this is a project that uses financial
01:00engineering to create structured products and deliver sustainable yield and Ribbon's first
01:07product focuses on yield through automated options strategies. So the protocol itself also allows
01:14developers to create arbitrary structured products through combining various DeFi derivatives.
01:22So structured products are packaged financial instruments initially and that use a combination of
01:30derivatives to achieve some specific risk return objective and this can include things as betting on
01:38volatility, enhancing yields or principal protection or things like that. So ThetaVault is a new product
01:45that automates a covered call strategy to earn high yield on Ethereum. The vault runs a covered call strategy
01:53and sells out of the money call options on a weekly basis for yield. The primary risk for running this strategy is that
02:01depositors could potentially give up upside in exchange for guaranteed yield by selling a call option. Users are basically
02:09promising to sell the asset at a fixed price even if it does go above the selling price.
02:17And because of this, the price of an asset moves up significantly in a short period of time. It is possible for depositors to have negative yield on the Ethereum as well.
02:29However, this only happens if the ETH USD pay appreciates significantly. So depositors will be
02:37still up in USD terms. The vault also sells options or call options that are out of
02:44very out of the money, for example, which means that there is a relatively low chance of the options getting exercised. As far as security,
02:54with Ribbon Finance and RBN smart contracts are audited by OpenZeppelin and PeckShield, ChainSafe,
03:02and QuantStamp as well. But users are also advised to still exercise caution when you're using these
03:10types of platforms. So you can go to ribbon.finance. You can check them out. They say they are decentralized,
03:18structured products in terms of using derivatives like options to generate sustainable risk
03:24adjusted yield and users just deposit their assets and let the contracts do the rest. There are
03:32investors involved in this project including Paradigm, Nascent, Robot Ventures, Dragonfly Capital,
03:37Ithterio Ventures, Scala Capital, Coinbase Ventures, Alliance are all also in on this project. Let me know
03:46what your thoughts are if this is something that you are familiar with or it's a project that you clearly have
03:52uh sort of an affinity for in terms of um you know what it does. I've already explained that uh
04:00helping users access crypto structured products from DeFi combining options futures and fixed income to
04:06improve a portfolio's risk return profile sounds a little bit of a more of a mature product for people
04:14that have been in the space or dealt with traditional finance before and understand some of these uh um
04:20complex uh products but again you know i think this is where the future of DeFi is going to go.
04:27Institutional funds are going to be looking at products that work in much the same way that uh is
04:33very familiar to what they do in traditional finance in terms of how they generate yield using
04:39sophisticated derivatives and things like that and doing that in a more sustainable decentralized
04:45fashion let me know what your thoughts are check out links in the description to our telegram and our
04:49discord server my books tokenized trillions and blockchain applied also links available check them
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