DeFi is one of the disruptive areas of the crypto market in 2021 and is poised to continue to drive the mass adoption of crypto through 2022.

The DeFi project that got off to a pretty good start in 2022 is Ribbon Finance (RBN), a protocol that financial engineering uses to create structured products like automated option strategies. They are designed to provide users with sustainable returns over time.

Data from TradingView shows that RBN price has risen more than 146% since trading at just $ 1.83 on Dec. 30, to a daily high of $ 4.50 on Jan. 3, during Dec. -Hour trading volume increased to $ 60.6 million.

RBN / USDT 4-hour price chart | Source: TradingView

The three reasons that sparked the recent RBN rally include the introduction of Ribbon Finance V2, the addition of new blockchain networks to the Ribbon Finance ecosystem, and the increase in the Total Value Locked (TVL) of the Ribbon Finance protocol.

Ribbon V2 released

One of the biggest developments driving price growth in the RBN is that release Volume V2. First announced in August 2021, the project gradually transformed liquidity and built its pools while testing new features.

“Remember to move your positions from V1 to V2 before Friday (7/1) to qualify for this week’s winnings! You will be charged fees when you withdraw from V1, but moving from V1 -> V2 is free (excluding gas fees) ”.

The upgrades that come with V2 focus on decentralizing the Ribbon Vault, including the ability to allow smart contracts to set the actual price for the options the vault sells. Additionally, creating an on-chain auction mechanism allows anyone on the opposite side of the vault to participate, rather than just whitelisting market makers.

Ribbon V2 also includes an upgrade to the Protocol’s Vault Accounting System which creates manageable Vault parameters that allow RBN holders to co-determine the strategy of each vault, as well as the administration and performance fees each vault requires.

These new upgrades will make Ribbon Finance more communally owned and also help increase long-term returns.

Integrated avalanche band

The second reason for the RBN’s advance is the recent inclusion of support for the Avalanche (AVAX) network, which includes a new AVAX premium call vault where users can deposit AVAX and earn 24.18% profit at press time.

“Today we are happy to announce that Ribbon is available on Avalanche. From now on, users can make profits with their AVAX via the AVAX Insurance Call Vault from Ribbon! “

According to the protocol, adding support for Avalanche “marks Ribbon’s first step into a multi-chain future,” indicating that the project plans to continue adding support for other networks.

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

The locked total reaches a new all-time high

A third sign suggesting Ribbon Finance’s growing strength is that TVL hit a new all-time high (ATH) of $ 295.96 million on January 3, according to data from Defi Lama.

TVL on Ribbon Finance | Source: Defi Lama

The significant increase in TVL coincides with the start of support for Avalanche on December 15, 2021, heralding the possibility of adding support for other networks. This could stimulate further growth in the future.

In addition to the AVAX Insurance Call Vault, Ribbon Finance currently offers six different automated products in the Ethereum network, including the Aave Insurance Call Strategy (AAVE), the stETH Collateralized ETH Insurance Call Strategy and the Sell Order Strategy. put ETH Collateralized with yvUSDC, call strategy of ETH insurance, call strategy of WBTC insurance and put-selling order strategy of ETH.

Ethereum-based safes on Ribbon Finance | Source: Ribbon Finance

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