Today marks a seminal day in COTI’s history. We have just released the first decentralized Crypto Volatility Index (CVI) and will be soon distributing the CVI governance token, $GOVI, once the CVI platform TVL reaches $500k USD.
We have created and released CVI and $GOVI to bring the very popular Market Fear Index from traditional markets to the crypto space.
Here is what we have seen as the big opportunity:
The Market Fear Index for traditional markets (VIX) is huge. In fact, the daily trading volume of VIX ETFs and Futures combined has grown exponentially to Billions USD in daily trades in the last 16 years, as demonstrated in the chart below:
It is only reasonable to assume that the Market Fear Index for Crypto (CVI) is just as necessary, as Crypto volatility is much higher than S&P 500 volatility.
We have created CVI as a decentralized index and permissionless trading platform, so that anybody can use it and either trade crypto market volatility directly, or use it as a hedge in a wider crypto portfolio.
CVI is an open source code and available on Github. Our intent with open sourcing CVI is for further trading instruments to be built upon the CVI index by the crypto community.
The $GOVI token is the governance token for the CVI platform and users who stake the $GOVI token on the platform will share in the platform’s fees.
$GOVI will also be the governance token for further development and tools we create for DeFi, whether it be new indexes or trading instruments.
$GOVI is a fair launch: no pre-mining, no investors, no cost.
The more people use CVI, the greater the income to $GOVI holders.
The more you use the platform, the more $GOVI you’ll get, as we will be distributing additional $GOVI tokens over time to users who supply liquidity on the CVI platform.
Today, we release the product and code to the hands of the developers and users’ community, with great expectations to see it grow.
We believe that the potential of CVI and $GOVI is huge.