Decentralized finance (DeFi) was one of the breakout sectors of the cryptocurrency marketplace in 2022 and stands poised to proceed to facilitate the mass adoption of cryptocurrency in 2022. This comes as institutional and retail investors cover the emergence of Finance ii.0.

Ane DeFi projection that has kicked off the year with a bullish kickoff is Ribbon Finance (RBN), a protocol that utilizes financial technology to create structured products such as automated options strategies. These are designed to provide users with sustainable yields over time.

Data from Cointelegraph Markets Pro and TradingView shows that since trading at a low of $1.83 on Dec. thirty, the price of RBN blasted 146% higher to hit a daily high of $4.50 on Jan. 3 every bit its 24-hour trading volume spiked to $60.6 million.

RBN/USDT 4-hour chart. Source: TradingView

Three reasons for the building momentum of RBN include the launch of Ribbon Finance V2, the improver of new blockchain networks to the Ribbon Finance ecosystem and an increase in the full value locked on the Ribbon Finance protocol.

Ribbon V2 launches

One of the biggest developments helping to bulldoze the toll growth in RBN has been the release of Ribbon V2. Originally appear in August 2022, the project has slowly been migrating liquidity and building its pools while also testing out new features.

The upgrades that came along with V2 focused on the decentralization of Ribbon vaults. This includes the ability to let smart contracts to ready strike prices for the options the vault sells. Additionally, the creation of an on-chain auction mechanism allows anyone to participate on the contrary side of the vaults instead of just whitelisted marketplace makers.

Ribbon V2 also includes an upgrade to the protocol'southward vault bookkeeping system. This involves the cosmos of governable vault parameters that allow RBN holders to take a say in determining the strategy that each vault deploys, as well every bit the management and performance fees that each vault requires.

These new upgrades should brand Ribbon Finance more than community-owned and also assist to increase the long-term yields offered.

Ribbon adds support for Avalanche

A second reason for the heave in RBN's momentum is the contempo addition of support for the Avalanche (AVAX) network. Included is a new AVAX covered phone call vault where users tin deposit AVAX and earn a yield of 24.18% at the time of writing.

According to the protocol, the add-on of support for Barrage "marks Ribbon's first step into a multi-chain future," which suggests that the project has plans to continue to add together back up for other networks as time progresses.

At the time of writing, in that location are 144,320 AVAX locked on the Ribbon Finance protocol worth roughly $15.iii 1000000.

Related: What's alee for crypto and blockchain in 2022? Experts answer, Part 3

Total value locked hits a new high

A third sign hinting at the rising forcefulness of Ribbon Finance has been the full value locked on the protocol which hit a new record high of $295.96 one thousand thousand on Jan. 3, co-ordinate to data from Defi Llama.

Total value locked on Ribbon Finance. Source: Defi Llama

The almost contempo significant heave to TVL coincided with the improver of support for Avalanche on December 15, 2022, and foreshadows the possibility of that integrating support for other networks. This could potentially lead to farther increases in the futurity.

Bated from the AVAX covered call vault, Ribbon Finance currently offers half-dozen different automated products on the Ethereum (ETH) network including an Aave (AAVE) covered phone call strategy, a stETH-collateralized ETH covered phone call strategy, a yvUSDC-collateralized ETH put selling strategy, an ETH covered call strategy, a WBTC covered telephone call strategy and an ETH put selling strategy.

Ethereum-based vaults on Ribbon Finance. Source: Ribbon Finance

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