Ribbon · interactive mechanism simulation

Depositors' collateral sits in a Theta Vault → each week it mints Opyn oTokens against a chosen strike → oTokens are sold via a Gnosis batch auction to market makers, who pay a premium back into the vault. If the option expires out-of-the-money, the premium compounds; if the market moves through the strike, the vault pays out from principal. Edit the parameters and watch the short-vol payoff.
Depositors ETH / WBTC / stETH Theta Vault TVL: 1000.0 ETH Opyn oTokens strike: 8% OTM Gnosis batch auction premium discovery Market makers buy oTokens, pay premium Weekly settlement week 0 Assignment payout 0.0 ETH paid to date
Weeks simulated
0
Vault TVL
1000.0 ETH
Premium collected
0.0 ETH
Assignment payouts
0.0 ETH
Net depositor return
0.0%
Parameters — edit me
1.5%/wk
8%
15%
10%
0.6 wk/s
Controls

Illustrative simulation. Defaults mirror the researched Ribbon Theta Vault mechanism (weekly OTM covered-call/put writing, Opyn oToken minting, Gnosis batch-auction premium discovery, a performance fee, and principal-at-risk assignment when the option finishes in the money), but weekly outcomes are randomized for visualization — not live onchain data. The 2021–22 crowding and negative-return dynamics described in the research are approximated, not replayed. Drag the sliders, or force a crash week to see the short-volatility payoff. Part of The Onchain Experiment Atlas.