Liquidity providers deposit funds into Ribbon Protocol and receive option premiums from traders & withdrawal fees from other liquidity providers (supply-side fees).

Ribbon Finance is a non-custodial asset management protocol built on Ethereum. Ribbon Finance was founded by Julian Koh & Ken Chan and launched in 2021.

RBN tokenholders own and govern the protocol. They currently take a cut of the total premiums and management fees paid by liquidity providers (revenue).

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Ribbon Finance

# Ribbon Finance Capital deployed Methodology

## 1. Overview

Capital deployed measures the total USD value of assets managed by Ribbon Finance's vault strategies. This includes assets actively deployed in options strategies through margin pools as well as assets held in earn vaults for lending strategies. The metric provides a comprehensive view of Ribbon's asset management activities across Ethereum and Avalanche blockchains.

## 2. Data sources

- **Smart contract events**: Parsed `MarginPool_TransferToPool_event` and `MarginPool_TransferToUser_event` from Ribbon v2 contracts on Ethereum and Avalanche
- **Token balance snapshots**: Daily token balance data for Ribbon earn vault addresses and associated lending pool contracts
- **External data**: End-of-day token price feeds for USD conversion and token metadata including decimal precision and symbols
- **Vault configuration**: Ribbon vault addresses, names, supported tokens, and version information across supported blockchains

## 3. Step-by-step calculation

### Component A: Option pool deployed assets
- **Purpose**: Calculates capital flows into and out of Ribbon's option strategies via margin pool operations
- **Logic**: Extracts `MarginPool_TransferToPool_event` and `MarginPool_TransferToUser_event` from Ethereum and Avalanche. Filters events to only include transfers involving known Ribbon vault addresses from the vault configuration. For deposits (`TransferToPool`), records the full `amount` value. For withdrawals (`TransferToUser`), sets amount to zero to avoid double-counting. Groups events by day and sums amounts by vault address and token. Forward-fills missing days to maintain continuous time series. Corrects token decimal precision and normalizes yvUSDC token addresses to underlying USDC addresses. Converts final amounts to USD using end-of-day price feeds.
- **Key fields**: `amount` (transfer amount), `asset` (token address), `user` (vault address), `block_timestamp` (event timing)

### Component B: stETH earn vault balances  
- **Purpose**: Tracks token balances held in Ribbon's stETH earn strategy vault
- **Logic**: Calculates daily token balances for the rEARN-stETH vault address `0xce5513474e077f5336cf1b33c1347fdd8d48ae8c` on Ethereum. Excludes four specific token addresses identified as scam tokens or LP tokens with incomplete price feeds. Aggregates balances by token type and converts to USD using end-of-day price feeds. Associates results with vault metadata including the account name "rEARN-stETH" and version "v2".
- **Key fields**: `balance` (token amount held), `token_address` (asset identifier), `account_address` (vault address)

### Component C: USDC earn pool balances
- **Purpose**: Tracks assets deployed in Ribbon's USDC earn lending strategy
- **Logic**: Calculates daily token balances across two lending pool addresses: `0x3cd0ecf1552d135b8da61c7f44cefe93485c616d` and `0x0aea75705be8281f4c24c3e954d1f8b1d0f8044c`. These represent the underlying lending pools where the rEARN-USDC vault deploys capital. Excludes the same four scam/LP token addresses as the stETH component. Aggregates balances by token and maps results to the rEARN-USDC vault address `0x84c2b16fa6877a8ff4f3271db7ea837233dfd6f0` for consistent reporting. Converts final balances to USD using end-of-day price feeds.
- **Key fields**: `balance` (token amount held), `token_address` (asset identifier), `account_address` (lending pool address)

### Final aggregation
- **Combining components**: The three components are combined using UNION ALL operations, creating a unified dataset with consistent schema including timestamp, chain, business classifications, vault information, and USD amounts
- **Currency conversion**: All token amounts are converted to USD using end-of-day price feeds, with decimal precision corrected based on token metadata
- **Time aggregation**: Data is aggregated to daily granularity with forward-filling applied to ensure continuous time series without gaps
- **Final calculation**: The `finalize_metric_capital_deployed` macro applies schema validation, business ID population, and zero-filling strategy for any remaining data gaps. Chain availability filtering ensures only supported blockchain data is included in the final metric.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of capital allocated into investments by an asset manager.

Ribbon FinanceRBN

Capital deployed

Capital deployed

Competitive landscape

Chain breakdown