Zeta Markets taps Ribbon to power options and derivatives in the Solana ecosystem

Rick Steves

“After launching on mainnet last week we’re excited to announce our partnership with Ribbon to lay the groundwork to facilitate options and derivatives in the Solana ecosystem”.

Zeta Markets has partnered with Ribbon Finance in order to facilitate the development of structured products on Solana.

Ribbon, a pioneer of DeFi Options Vaults (DOVs), will be the first major Ethereum project to launch on the Solana ecosystem and users will leverage Zeta’s infrastructure to earn sustainable yield through Ribbon’s automated options strategies.

The US equity markets options volume as a percentage of spot is ~35X, which goes to show the potential to replicate the sheer size of the options market on crypto.

The reality today is that while option writing strategies have been one of the most lucrative ways to earn yield on digital assets, crypto options volume as a percentage of spot volume is ~2%.

Ribbon and Zeta hope to address issues in the infrastructure layer, which is lagging in comparison, in order to address the demand for such products.

Structured products on the Solana ecosystem

Tristan Frizza, Core Contributor to Zeta Markets, said: “After launching on mainnet last week we’re excited to announce our partnership with Ribbon to lay the groundwork to facilitate options and derivatives in the Solana ecosystem. We aim to give all of our users a superior experience similar to what they’re used to in the traditional options markets and are pleased to be working alongside the talented team at Ribbon to fulfil their vision of making structured products available to DeFi users around the globe.”

Julian Koh, Co-Founder of Ribbon Finance, added: “We’re excited to bring structured products to the Solana ecosystem through our partnership with Zeta Markets. We know that structured products will become an important part of the evolving crypto marketplace which is why we will continue to expand our offering to other blockchain ecosystems.”

Darius Sit, Managing Partner & Co Founder of QCP Capital, commented: “As the crypto options space continues to grow rapidly it’s exciting to see one of the top Ethereum DOVs launch on Solana via Zeta Markets. This is a great development for both Solana and the crypto ecosystem as a whole since protocols like Ribbon and Zeta are the building blocks for a comprehensive DeFi experience.”

Yield through automated options strategies

Ribbon’s first product focuses on yield through automated options strategies and allows developers to create arbitrary structured products by combining various DeFi derivatives.

Already on Avalanche since December, Ribbon is now operating on Solana thanks to the partnership with Zeta Markets. Its DeFi options projects have about $300m in total value locked.

Zeta Markets is a decentralized platform built on Solana that facilitates liquid, non-custodial, and under-collateralized derivatives trading. The firm has recently raised $8.5M to launch on the Solana mainnet on January 17th.

The platform features undercollateralized trading, portfolio cross-margin, sub-second mark-to-market updates, instant settlement, as well as an order book and matching engine powered by Serum.

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