Version 2.0 of the Crypto Volatility Index Went Live
Crypto Volatility Index (CVI) went live. After extensive months of planning, designing and development, CVI Version 2 has officially launched. This updates brings more opportunity to its users to earn more rewards.
NEW CVI VERSION FEATURES
- Revamped UX
- USDC platform
- Margin trading (on the Polygon network)
- Volatility Tokens on DEXs
- Rebalancing of lockups and rewards: shorter lockups, balanced rewards
Rebalancing lockups and rewards
As part of the platform upgrades, CVI have also rebalanced the fees mechanism, and added a feature of dynamic rewards for traders. In addition, they have reduced the liquidity providers’ lockup from 72 hours to 48 hours. They have added a $USDC platform to the new version, in which you can now open positions, provide liquidity and stake your CVI USDC liquidity tokens through CVI. New features such as margin trading, will be available at first via the USDC platform.
UX for Margin Trading is now available as well. Using leverage, traders now have an optimized capital efficiency to their trades. This development makes it possible for traders to leverage their USDC positions on the Polygon network by X2 (and X3 at a later stage), thus allowing them to access greater sums of capital to enhance their trading strategies. Hence, successful trades are bound to generate larger profits compared to unleveraged trades, which increases the capital efficiency for the platform’s users as they risk less funds when the margin trade.
Volatility Tokens and composability
Volatility tokens are a huge milestone that bring a new and innovative concept to trade volatility, while making CVI truly composable to the greater Defi ecosystem. The architecture is based on funding fee adjusted leveraged rebased volatility tokens. The token is adjusted by funding fees and is being rebased to keep it pegged to the index.
The first Volatility token that CVI launched is ETHVOL (USDC-ETH), to be traded on any Ethereum based DEXs, attracting the attention of traders, DEXs and Arbitrageurs when there is a difference in prices between the two markets (mint/burn due to prices on secondary markets). In addition, arbitrage related operations on the main platform (mint \ burn) will result in an increase of collected fees (open \ close position).
Next Volatility token to be launched is CVIVOL, which will be traded on any Polygon supported DEXs. Using volatility tokens, liquidity providers on DEXs can protect themselves from Impermanent Loss on Liquidity Pools.
ABOUT CVI
CVI is a decentralized volatility index for the crypto space — powered by COTI network.
