After V2 was released and integrated with Avalanche, Ribbon Finance rose by 60%


Decentralized finance (DeFi) is one of the breakthrough areas in the cryptocurrency market in 2021, and is expected to continue to promote the large-scale adoption of cryptocurrencies in 2022. This is because institutional and retail investors have accepted the emergence of Finance 2.0.

One DeFi project that started this year bullishly is Ribbon Finance (RBN), a protocol that uses financial engineering to create structured products (such as automated option strategies). These are designed to provide users with sustainable benefits over time.

Data from Cointelegraph Markets Pro and Transaction view It shows that since trading at a low of US$1.83 on December 30, the price of RBN has increased by 146%, hitting a daily high of US$4.50 on January 3, and its 24-hour trading volume has soared to US$60.6 million.

RBN/USDT 4-hour chart. Source: TradingView

Three reasons for RBN’s momentum include the launch of Ribbon Finance V2, the addition of a new blockchain network to the Ribbon Finance ecosystem, and the increase in the total value locked in the Ribbon Finance agreement.

Ribbon V2 released

The release of Ribbon V2 is one of the biggest developments in driving RBN price growth. The project was first announced in August 2021 and has been slowly migrating liquidity and building pools, while also testing new features.

The upgrade brought by V2 focuses on the decentralization of the Ribbon vault. This includes the ability to allow smart contracts to set strike prices for options sold by the treasury. In addition, the creation of the on-chain auction mechanism allows anyone to participate in the other side of the vault, not just the whitelisted market makers.

Ribbon V2 also includes an upgrade to the protocol vault accounting system. This involves the creation of manageable treasury parameters, allowing RBN holders to have a say in determining the strategy deployed by each treasury and the management and performance costs required by each treasury.

These new upgrades should make Ribbon Finance more community-owned and help increase the long-term benefits provided.

Ribbon adds support for Avalanche

The second reason for RBN’s increased momentum is the recent increase in support for Avalanche (AVAX) The internet. This includes a new AVAX vault, where users can deposit AVAX and earn a 24.18% yield at the time of writing.

According to the agreement, the increase in support for Avalanche “marks Ribbon’s first step towards a multi-chain future”, which indicates that the project plans to continue to increase support for other networks over time.

At the time of writing, there are 144,320 AVAXs locked on the Ribbon Finance agreement, valued at approximately $15.3 million.

related: What is the outlook for encryption and blockchain in 2022?Expert answers, part 3

Lock in total value and hit a new high

The third sign that implies the strength of Ribbon Finance is the total value locked in the agreement, which hit a record high of $29596 million on January 3. according to Data from Defi Llama.

The total value locked on Ribbon Finance. Source: Defi Llama

The recent major push to TVL coincides with the addition of Avalanche support on December 15, 2021, and heralds the possibility of integrating support for other networks. This may lead to further increases in the future.

In addition to the call vault covered by AVAX, Ribbon Finance currently provides six different automation products on Ethereum (Ethereum) Network, including an Aave (AAVE) Cover bullish strategy, stETH mortgage ETH cover bullish strategy, yvUSDC mortgage ETH bearish sell strategy, ETH cover bullish strategy, WBTC cover bullish strategy and ETH bearish sell strategy.

Ethereum-based vault on Ribbon Finance. Source: Ribbon Finance

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.