Ribbon Finance is a new protocol that helps users access crypto structured products for DeFi. It combines options, futures, and fixed income to improve a portfolio's risk-return profile.

One of its core product is the Theta vaults for WBTC and ETH, which sell covered calls. These promise guaranteed USD returns (though you might suffer coin denominated losses). A call is an option that allows the holder of the option the right to exercise it and purchase the specificed asset at the strike (price listed in call option) price. A covered call is a call option where you have the asset ready incase the call option expires in the money. A covered call seeling strategy, makes profit by selling call options and collecting fees as premium. As long as the option is not in the money , i.e not above the call strike price, the option buyer wouldn't profit from the call and our assets remain unaffected. However in the even of price being higher than the strike price, the caller can get our assets at a discount and sell it for profit, thus resulting in coin-denominated losses for the user.

In this dashboard, we will look at the TVL locked in these vaults. These vaults are deployed on the addresses -

• 0x25751853eab4d0eb3652b5eb6ecb102a2789644b - ETH
• 0x65a833afDc250D9d38f8CD9bC2B1E3132dB13B2F - WBTC

Since these vaults are always in a strategy, we must track the deposit and withdrawal events with respect to these vaults to gather the data we need and aggregate it inorder to calculate the vault balances. Upon doing the necessary aggregation we get .

We can see that ETH vault has explosive growth, while WBTC hasn't quite caught upto it. There a quite a few reasons why this could be the case.

• Ease of deposit - For the ETH vaults, native ETH can be deposited, just as WETH. WBTC, only takes the ERC-20 token. We all know that ERC-20 transactions require two transaction and more over smart contract calls, which make the whole deposit more expensive. This could be a factor that keeps users out of it.
• ETH abundance - ETH being the native token, is more abundant than WBTC. This means, more ETH is available on the chain to be deposited, than WBTC

• WBTC vault returns - While on the recent timeline, we can see that WBTC has been toe to toe with ETH vault in terms of returns, there was an inital 'ITM' event in which the users took serious losses. This could have a negative impact in terms of mentality of users. Especially as this data is shown on the front end itself.