JK
Julian Koh is the founder of Ribbon Finance, a decentralized finance platform focused on options and derivatives.
The platform offers standardized products including popular covered call options on Bitcoin and Ethereum.
1Interview
2022First on the show
Oct 2022Latest appearance
15 minOn camera
14:33
Latest interview · Oct 18, 2022Julian Koh on derivatives and options in DeFi at Ribbon FinanceWatch the episode →
Key points
- Ribbon Finance is the largest structured products protocol in DeFi, having traded over 10 billion dollars in option volume with peak assets near 400 million.
- Structured products simplify complex derivatives by combining multiple derivative contracts into easy-to-understand payoffs accessible to retail users without minimum investment requirements.
- Covered call strategies on Bitcoin and Ethereum generate 30-50 basis points weekly in premiums compared to traditional yield farming returns of 20-30 basis points annually.
- Ribbon sources liquidity for options by working with market makers and institutional trading firms who purchase call options from vaults during weekly auctions.
- Options and derivatives markets remain underdeveloped in crypto compared to traditional finance, with futures dominating while options and interest rate swaps remain nascent.
In their own words
“I think derivatives are the killer use case of DeFi.”
“You earn in a week what you'd get in a whole year on Aave.”
