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.
Users can open positions, provide liquidity and stake their LP tokens in order to receive additional awards.