ETHVI Index is Now Available on the CVI Platform!
With great confidence that volatility trading is about to become mainstream within DeFi, we are delighted to announce the launch of the Ethereum Volatility Index, ETHVI, on the CVI platform.
This new index allows us to expand our index portfolio, and its integration is the necessary first step before the expected volatility tokens’ launch.
In a nutshell, ETHVI will be available on the Ethereum network and will track the 30-days implied volatility of Ethereum. The index ranges between 0 and 220, and is also produced based on a Black-Scholes option pricing model, which computes the implied volatility of the Ethereum option prices and analyzes the market’s expectation of the coin’s future volatility.
The index will be live and running on the CVI Platform for traders and Liquidity Providers to implement trading strategies, much like volatility traders use VIX on traditional capital markets.
Initially, we will open a USDC pool for users to trade and provide liquidity to this new index. This new pool will distribute all accumulated fees to our GOVI stakers on the Ethereum network and liquidity providers to the USDC pool on ETHVI.
On the other hand, as many of you already know, one of the main features we are working on is the expected volatility tokens that will give traders and institutional investors a new tool to track and trade volatility.
As we previously announced, one of those tokens will be ETHVOL; a volatility token pegged to this new ETHVI index tracking the implied volatility of Etherum. So, today’s release of the new index marks the start of the official volatility tokens launch process!
To sum things up, users will be able to trade and provide liquidity to this new index in two different ways: by trading the ETHVI directly on the CVI platform and/or by trading the ETHVOL token in a secondary market.