CVI Platform and Competition — Update for January 5th
In order to encourage users to test the platform before it goes live on MainNet, we are hosting an incentivized trading competition on the CVI platform. Participants will share rewards for a total of 120K $GOVI.
Here are some key insights of what happened on the platform since we have started the competition:
- More than 700 users are now participating in the competition and are testing the system. We are collecting valuable insights and ideas which will be implemented on MainNet.
- 7,074,858$ test USDT are locked into the platform. Of which: 3,884,686$ are deposited in liquidity and 3,190,171$ is the current trading positions.
- During this time, the CVI rose to an all-time high of 121.2
Buyers of CVI (LONG CVI):
- Most users of the platform (571) have chosen to be Buyers of the index, meaning that they took the LONG position, expecting MORE market volatility.
- The buyers’ positions size is: 3.19M USDT
- As it turns out, those users were correct in their prediction, some profiting more than 39% in just 5 days
- It’s worth mentioning that the collateral ratio, which is the ratio between the amount of all the buyers’ positions and the total liquidity available, is now at 80.5%. This is just above the threshold from which the opening position fees would start to rise. When the collateral ratio rises, so does the buying fees, in order to balance the market.
Depositing Liquidity (SHORT CVI):
- Users of the platform who anticipate LESS market volatility are depositing liquidity on the platform, essentially SHORTing the CVI on one hand and collecting substantial fees on the other hand.
- 453 users have posted liquidity position in 3.9M$ test USDT
- So far, as market volatility has actually grown, those users have lost about 12% on average
Fees and rewards
The platform has collected 16,221$ in fees so far. These fees, on MainNet, would have been distributed between the holders of $GOVI tokens who stake their tokens. This rater implies to quite a substantial annual income from fees to stakers of $GOVI
The CVI team is taking trades too! If you’d like to follow the team’s trading activity, check “The Crypto Trader” page on Twitter: @crypto_Vtrader
As the index is fully decentralized and the data is open market data, the team has no advantage over other traders and should be viewed as an advice (in fact, the team is not beating other traders so far…).
We’ll be updating on a daily basis on how the competition rolls on. Stay tuned!