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Ribbon

The Ribbon Protocol uses derivatives like options to generate sustainable, risk-adjusted yield. Users just deposit their assets, and let the smart contracts do the rest.

Products Non-US Cleared

WB - WBTC Option Vault

Product Code
WB
Instrument
Options
Inst Sub Type
European
Settlement Type
Financial
Underlying Asset
Min Block Size (Contract)
Min Description
Per Transaction
Contract Multiplier
1 WBTC
Min Price Increment
0.00001 WBTC
Min Contract Increment
0.1

AV - AAVE Option Vault

Product Code
AV
Instrument
Options
Inst Sub Type
European
Settlement Type
Financial
Underlying Asset
Min Block Size (Contract)
Min Description
Per Transaction
Contract Multiplier
1 AAVE
Min Price Increment
0.00001 AAVE
Min Contract Increment
0.1

Notes

All Ribbon products are not US Cleared

Leg Pricing Assignment Methodology

Paradigm’s leg pricing methodology attempts to take the quoted strategy prices as entered by the maker and calculate individual leg prices subject to the following broad constraints:

1

Calculate leg prices as close to the mark as possible

2

Leg prices must be in increments of minimum tick size

3

Leg prices must be within the Min and Max prescribed by the exchange for each leg

4

For options strategies, leg prices must preserve delta relationships:

  1. Higher strike puts > Lower strike puts
  2. Higher strike calls < Lower strike calls

Fees

Paradigm fees are 4 bps on notional volume, not to exceed 12.5% of premiums.

Account Credentials

1

To participate in Paradigm auctions, bidders need to approve their wallet / tokens beforehand. Follow the instructions on Ribbon’s website to approve your wallet / tokens.

Note: When approving the Ribbon smart contract, verify that the “Spend Limit Permission” is set to a large enough amount to cover the auction. By default, it is recommended to be set to unlimited by Ribbon. This can be changed by editing the Permission Request and setting a “Custom Spend Limit”. When bidding, if you get an error message that says “SIGNER_ALLOWANCE_LOW”, you may need to re-approve and re-set this permission.
2

Navigate to Paradigm Admin

3

Click “Ribbon” under “Derivatives (listed)” and navigate to the Account Tab (default tab currently)

4

Click "Add +" in the top right corner

5

Paste in your Swap Address: On the Ribbon Wallet Approval page (link here), click on the icon next to “Paradigm” to open Etherscan. Your Swap Address is the hash next to “Contract”

6

Paste in your Bidding Token Address: On the Ribbon Wallet Approval page, click on the icon next to the coin that you’ve approved to open Etherscan. Your Bidding Token Address is the hash next to “Contract”

Note: As we ramp up and add more vaults (i.e. AAVE) you will need to do this same approval flow on both the Ribbon and Paradigm sides for each new bidding token. This means that you will need at least one “wallet” set up for each Ribbon bidding token in the Paradigm Admin Dashboard.
7

Paste in your Wallet Address

Note: ensure you use the same wallet information that you used to approve on Ribbon’s site

Restricted Jurisdictions

Countries
Please refer to the specific DeFi vault documentation for information about restricted jurisdictions

* Other jurisdictions may be (partially) restricted.

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