Crypto Volatility Index (CVI) is the first-of-its-kind decentralized Crypto Volatility Index for the crypto market. The CVI allows users to hedge themselves against market volatility and impermanent loss. CVI is a full-scale decentralized ecosystem that brings the sophisticated and very popular “market fear index” into the crypto market. It is created by computing a decentralized volatility index from 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.
How to use Crypto Volatility Index?
The Crypto Volatility Index and platform are available on [cvi.finance, https://cvi.finance/].
Users can open positions, provide liquidity and stake their LP tokens in order to receive additional awards.