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 Total value locked Methodology

## 1. Overview

Ribbon TVL represents the total value of assets under management across Ribbon's decentralized options infrastructure and yield strategies. This includes assets deployed to option-writing strategies, idle assets held in vaults awaiting deployment, and assets in specialized earn products (stETH and USDC lending). The calculation treats net deposits as TVL, combining four distinct asset categories to provide a comprehensive view of Ribbon's total value locked.

## 2. Data sources

The methodology relies on several types of blockchain and external data:
- **Option pool events**: Parsed `MarginPool_TransferToPool_event` and `MarginPool_TransferToUser_event` logs from Ribbon v2 contracts on Ethereum and Avalanche
- **Token transfer events**: Parsed `Transfer` events from ERC20 token contracts to track balance changes in vault addresses
- **Token balance snapshots**: Historical token balance data for tracked vault addresses across multiple chains
- **Vault configuration**: Hardcoded vault addresses, token addresses, and metadata for Ribbon's various vault types and versions
- **End-of-day price feeds**: Daily USD price data for all tokens held in vaults
- **Token metadata**: Token decimals, symbols, and contract information for proper value calculations

## 3. Step-by-step calculation

### Component A: Deployed assets to option strategies
- **Purpose**: Tracks assets actively deployed from vaults to option-writing strategies through margin pools
- **Logic**: Extracts `MarginPool_TransferToPool_event` and `MarginPool_TransferToUser_event` logs from Ethereum and Avalanche. For transfers to pool, records the full `amount` value representing assets moving from vault to strategy. For transfers to user (withdrawals), sets amount to 0. Corrects token decimals using metadata, aggregates flows daily by vault and token, and forward-fills missing days to maintain continuous time series. Converts yVault token addresses (yvUSDC v1 and v2) to their underlying USDC token for consistent reporting
- **Key fields**: `block_timestamp` for timing, `amount` for transfer values, `user` for vault addresses, `asset` for token addresses

### Component B: Idle assets in vaults
- **Purpose**: Calculates the value of tokens sitting idle in Ribbon vaults, not yet deployed to strategies
- **Logic**: Processes token balance changes from transfer events using incremental logic that tracks daily balance deltas. Applies cumulative sum calculations over time windows to build running balances for each vault-token pair. Forward-fills missing days to ensure complete time series coverage. Filters out excluded token addresses to remove scam tokens and LP tokens with incomplete price feeds. Multiplies final balances by end-of-day USD prices
- **Key fields**: `timestamp` for daily boundaries, `balance` for token quantities, `account_address` for vault identification, `token_address` for asset identification

### Component C: stETH earn vault balances
- **Purpose**: Tracks token balances held in Ribbon's stETH earn vault for yield generation
- **Logic**: Uses portfolio calculation logic to extract token balances for the specific stETH earn vault address. Excludes problematic token addresses including scam tokens and LP tokens. Applies end-of-day USD price conversion and aggregates by vault and token. Maps vault address to account name using hardcoded vault configuration
- **Key fields**: `account_address` for vault identification, `token_address` and `balance` for holdings, `price_usd` for conversion

### Component D: USDC earn pool balances  
- **Purpose**: Captures token balances deployed to lending pools as part of USDC earn strategy
- **Logic**: Tracks token balances in specific lending pool addresses but attributes them to the main USDC earn vault for reporting consistency. Excludes problematic tokens using the same exclusion list as other components. Converts balances to USD using end-of-day prices and aggregates by token type. Uses hardcoded mapping to associate lending pool balances with the rEARN-USDC vault name
- **Key fields**: `account_address` for pool identification, `token_address` and `balance` for pool holdings

### Final aggregation
- **Combining components**: Unions all four components using identical schema with `timestamp`, `chain_id`, `market_sector_id`, `business_segment_id`, `product_id`, and `amount` fields
- **Currency conversion**: All components convert token amounts to USD using end-of-day price feeds with proper decimal correction applied first
- **Time aggregation**: All data aggregated to daily granularity with forward-filling to ensure no gaps in the time series
- **Final calculation**: Sums all `amount` values across components as `net_deposits`, then treats `net_deposits` directly as TVL without additional transformation

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

Ribbon FinanceRBN

Total value locked

Total value locked

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