ETHVOL and CVOL Volatility Tokens Are Now Available on the CVI Platform -Breaking
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CVI Platform now offers ETHVOL Volatility Tokens and CVOL Volatility tokens- Volatility Tokens ETHVOL & CVOL have been made available for purchase on both secondary and CVI platforms.
- The tokens are the first of their kind funding-fee-adjusted-rebased Volatility Tokens.
- ETHVOL has been pegged at the ETHVI Index, while CVOL has been pegged at CVI.
The CVI platform now offers cryptocurrency volatility tokens (ETHVOL and CVOL). The tokens can also be purchased on secondary markets. Volatility Tokens can be used to trade crypto volatility. The team behind the project credits the token as the first of its kind funding-fee-adjusted-rebased volatility tokens.
Not surprisingly, crypto is volatile. Many have made a lot of money investing in cryptocurrency, but also suffered huge losses when it crashes. Investors are still unsure why crypto investments can be so volatile.
This question keeps coming up from crypto investors and analysts to all levels. While many attribute the instability to speculations, fragile investors, the emerging market, and so on, some still feel the volatility is beyond anyone’s understanding.
But Volatility Tokens succeeded in bringing a brand new way to trade volatility while also making CVI compatible and compatible with the wider Defi ecosystem. This is yet another milestone.
Fortunately, some projects such as ETHVOL which was the first Volatility Token to be launched, are focused to reduce or eliminate investors’ losses through developing their own Volatility Tokens.
In detail, ETHVOL is pegged to the new ETHVI index, which tracks Ethereum’s volatility . ETHVOL can also be traded on Ethereum based DEX V2. This attracts traders’ and arbitrageurs’ attention when the prices of Uniswap or the CVI platforms differ.
CVOL on the other side is the second Volatility Token that can be traded. This token tracks the implied volatility of Ethereum and is linked to the CVI Index. CVOL is also available for trading on QuickSwap’s Polygon network.
Of note, all the Volatility Token’s arbitrage-related operations performed on the main platform (mint/burn) will result in an increase in collected fees distributed to GOVI stakers. Buying ETHVOL or CVOL tokens via secondary markets will be equivalent to buying long positions on ETHVI/CVI indexes.
Volatility Tokens are not available for purchase on the platform. You can immediately sell them on secondary market without any lockup. There is no buy or sell fee. You can also stake your LP tokens to earn GOVI Rewards and Uniswap/Quickswap Fees. There is also no time limit for claiming your GOVI.
The Volatility Tokens are a major benefit to the ecosystem. To provide liquidity for the ETHVOL–USDC pool at Uniswap or CVOL–USDC pool at QuickSwap, users can either buy/mint ETVOL/CVOL tokens. They can also stake their CVOL-USDC LP tokens and ETVOL-USDC LP tokens via the CVI platform to earn GOVI Rewards.
The USDC pool liquidity providers pay a monthly fee to all ETHVOL/CVOL token holders. In return, the liquidity providers make a share of all ETHVOL and CVOL tokens currently in circulation. In summary, it is advised that investors should ensure that they implement strategies that “manage” risk and uncertainty when the market is fluctuating. To explain each stage of the development process, the team states that they have compiled the necessary technical information in an easy to read Litepaper.
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