CVI is a full-scale decentralized ecosystem that brings the sophisticated and very popular “market fear index” into the crypto market.
Built on Ethereum and Polygon, it consists of an index that tracks the 30-day implied volatility of Bitcoin and Ethereum.
The index ranges between 0 and 200 and is produce based on a Black-Scholes option pricing model, which computes the implied volatility of cryptocurrency option prices together with analyzing the market’s expectation of future volatility.
The CVI brings a new set of tools to the DeFi space. Users can:
- Buy a position in the index if they believe volatility in crypto is about to grow, as a speculation or as a hedge for their portfolio.
- Become a platform liquidity provider to earn fees whether they feel that volatility will decrease or remain the same.
- Protect their position as liquidity providers on DEXs against impermanent loss (caused by major fluctuations in assets price, regardless of the direction)
- Earn $GOVI, the DAO token of CVI, on all of the above.
CVI is an open-source code that allows further trading instruments to be built upon the CVI index by the crypto community.
WEB Site: cvi.finance