CVI is thrilled to unveil CVI v4 with our biggest release since our launch in 2021! A suite of five game changing enhancements that are set to redefine crypto volatility trading: The Hedged Theta Vault, Ultra CVI, leveraged volatility trading and an innovative Referral Program. These advancements are a quantum leap for the platform, marking the evolution of the CVI ecosystem to its most comprehensive form yet.
In a world where traditional Market fear index-based volatility trading instruments have gained significant traction, the cryptocurrency market has long been on the lookout for its pivotal moment. Inspired by the success of traditional instruments like UVXY and VXX, we’ve carefully crafted the Hedged Theta Vault, Ultra CVI and leverage trading. These offerings are engineered to deliver a trading experience that is both intuitive and very potent, setting a new standard in crypto volatility trading.
And to reward our community and affiliates for being part of our growth, we’re rolling out an all-new Referral Program. This program will be an integral part of the CVI experience, offering tangible benefits for your active involvement and support.
Join us in this exciting new chapter for CVI as we explain these new features in greater detail!
Ultra CVI: Our Volatility Index On Steroids
CVI introduces the long awaited debut of Ultra CVI. This instrument serves as an integral expansion of the CVI ecosystem and is designed to set new standards in crypto volatility trading.
The Mechanics of Ultra CVI: Stretching CVI
Ultra CVI is designed to be a ~3x stretched version of the CVI. Where CVI cycles between 0–200, UCVI cycles between 0–660. The objective is to provide traders with a more potent tool to capitalize on the crypto market’s inherent volatility.
Leverage Unleashed: Borrow up to 16x from the Theta Vault
We are delighted to introduce one of the most eagerly awaited features on the CVI platform — the ability to borrow up to 16x leverage from the Theta Vault. This enhancement is a game-changer for traders, offering a level of leverage that unlocks new dimensions in trading strategies and efficiency.
1. Unprecedented Leverage Levels: The Theta Vault now allows traders to amplify their trading power with up to 16x leverage. This significant increase enables more aggressive trading strategies, providing the flexibility to capitalize on market movements like never before.
2. Combining with Ultra CVI for Maximum Impact: When paired with the ~3x leverage offered by Ultra CVI, this dual-layered mechanism results in a staggering ~48x leverage in relation to the base CVI index. This synergy creates the most potent on-chain leveraged volatility tool available in the market.
3. Efficiency and Power: This combination not only offers high leverage but also ensures efficiency. The leverage is designed to be capital-efficient, enabling traders to maximize their potential returns while managing their risk exposure.
4. A Unique Trading Instrument: Leverage transforms CVI into a one-of-a-kind and powerful trading instrument. It stands out in the DeFi space, offering traders an unparalleled opportunity to engage with market volatility.
The Impact on Trading
This development is not just about higher numbers; it’s about opening up a world of possibilities for our traders. The enhanced leverage allows for more dynamic, responsive, and strategic trading. It caters to the needs of those looking to take on higher risk for potentially higher rewards, as well as those seeking to execute more complex trading strategies.
Safety and Responsibility
While we’re excited about the possibilities this leverage offers, we also emphasize the importance of trading responsibly. Higher leverage means higher potential returns, but it also comes with increased risk. We encourage our traders to use these tools wisely and consider their risk tolerance and trading objectives.
The Hedged Theta Vault: A Game-Changer in Liquidity Risk Management
CVI is excited to announce another innovative addition to our suite of products: the Hedged Theta Vault. This strategic development is built on the success of our existing Theta Vault from CVI v3, known for its solid performance and returns. While the Theta Vault has delivered an impressive APR of 10–20%, it’s no secret that the high funding rates associated with open positions have been a concern for many of our users.
The Hedged Theta Vault is our answer to these concerns. It’s a sophisticated mechanism that allows us to dramatically reduce funding rates, and at the same time, enhance the capabilities of our leveraged volatility offering. We’re confident that this will lead to a significant uptick in TVL and, by extension, bolster the overall platform yields.
A standout feature of the Hedged Theta Vault is its focus on shorting capabilities. The addition of an Inverse platform within the vault structure allows for the opening of leveraged short positions on CVI. This is a game-changer in balancing the risks associated with long positions in the market. Every new long position on CVI triggers the vault to dynamically adjust and add liquidity to the Inverse platform, thereby countering the liquidity risks of long positions with strategic shorting.
Dynamic Funding Rate Adjustment
The Hedged Theta Vault introduces a dynamic mechanism for adjusting funding rates based on the balance between Long Open Interest (OI) and Short OI. This process takes place in two-hour intervals.
→ If a long position is opened without a corresponding short position, it indicates a temporary exposure for the vault. This leads to an increase in the funding rate for long positions in the next time windows.
→ If traders do open matching short positions, the funding rate for long positions remains unchanged, indicating a balance between long and short interests.
Real-Time and Scheduled Updates for Predictability
Funding rates will continue to update in real-time in response to CVI changes. However, usage-based adjustments will only occur during the designated time windows. This structure offers traders a buffer against immediate impacts from significant trades, ensuring that any funding rate adjustments occur gradually and predictably.
Implementing a Withdrawal Fee
To support the sustainability and growth of CVI, we are introducing a modest 0.1% withdrawal fee in the Hedged Theta Vault. This fee serves as an additional revenue stream for the protocol/GOVI stakers. Set at a minimal rate, this fee ensures a balance between generating revenue and maintaining a user-friendly experience.
Initially, access to the Inverse platform is reserved for whitelisted market makers. However, plans are underway to extend its functionality to all users, ensuring a user-friendly and straightforward engagement. This will allow the vault to support larger CVI positions without increasing its risk profile, thereby confidently maintaining lower funding rates.
Shaping the Future of Volatility Trading
As we continue to innovate, CVI is excited to see how these enhancements redefine volatility trading. We are actively shaping market trends, equipping our community with advanced tools and a reliable platform for their trading, hedging, and investment needs. The Hedged Theta Vault is a testament to our commitment to providing cutting-edge solutions for the evolving needs of the DeFi community.
Integrated Bridge and Swap Functionality
To elevate your experience on CVI, we collaborate with Socket, introducing an advanced integrated bridge and swap functionality. This innovative feature is meticulously designed to enhance your multichain accessibility, ensuring that your assets are effortlessly transferable and ready for action on CVI.
1. Seamless Bridging: With the integrated bridge, you can now move your USDC across various blockchain networks smoothly, directly converging onto the Arbitrum network.
2. Effortless Swapping: Alongside bridging, the swap function allows for immediate conversion of your assets.
3. Central Trading Hub: By incorporating these functionalities into our main trading page, we’ve centralized your trading operations on CVI. You no longer have to juggle between various platforms to bridge or swap your funds.
4. Enhanced Liquidity and Efficiency: By facilitating easy movement and conversion of assets, this feature enhances the liquidity on the CVI platform.
IMPORTANT: USDC.e to USDC
Where CVI historically has used USDC.e, the bridged version of USDC on Arbitrum, we now use the native version. So keep in mind that you will need to swap USDC.e to USDC before you can use it on our platform.
CVI Boosts Engagement: Referral Program
CVI is thrilled to introduce its highly-anticipated Referral Program, set to redefine your experience with CVI. This program is meticulously crafted to reward our affiliates and traders, elevating your CVI journey to new heights. Here’s a comprehensive overview of this exciting new development:
Creating and Managing Referral Codes
At the core of the Referral Program lies the creation and management of unique referral codes. Here’s how it works:
→ To generate an exclusive referral code, users are required to link their wallet and execute a transaction, ensuring the uniqueness of each code.
→ Affiliates have the freedom to generate multiple referral codes, all linked to their wallet address.
→ Users can choose which referral code will be shown on your “share position card”
→ Crucially, these referral codes can be utilized on any web2 website or post, directly connecting users to the CVI platform.
→ When a user employs a referral link and associates their wallet address with the CVI.finance website, their address will be automatically assigned to the referral code found in the link.
→ In the event that a trader already possesses a referral code linked to their wallet address and chooses to use a different referral link, their referral code will be automatically updated.
→ Each trader can utilize only one referral code, which can also be manually updated by the user.
→ It’s imperative to note that referral codes cannot be deleted, neither by traders nor by the affiliates who created them.
Referral Tiers and Fees
The CVI Referral Program introduces a multi-tier system, offering a range of discounts and rebates to our loyal community:
Tier 1: This tier provides a 5% discount for traders and rewards referrers with a 5% rebate.
Tier 2: Affords traders a 10% discount and offers referrers a 10% rebate.
Tier 3: At this level, traders enjoy a 15% discount, and referrers receive a 15% rebate.
Example: Suppose a referrer belongs to tier 2, and their referees collectively achieve a trading volume of 1 million USDC. The protocol then generates total fees at a rate of 0.14%, amounting to 1400 USDC. Given that the referral reward is set at 10%, the referrer will earn a commission of 140 USDC.
Rewards are paid in USDC and affiliates can conveniently claim their rewards directly from the referral page, making the process seamless and user-friendly.
(Notably, these tiered discounts are subject to change at the discretion of CVI.)
Minimum requirements to increase your tier:
- From Tier 1 to Tier 2, affiliates must maintain at least 10 active users using their referral codes per month, along with a combined monthly volume exceeding $250,000.
- From Tier 2 to Tier 3, affiliates must maintain at least 20 active users using their referral codes per month, coupled with a combined monthly volume surpassing $500,000.
For affiliates meeting the criteria, the upgrade from Tier 1 to Tier 2 will be carried out manually by the CVI team.
Please remember that these tier upgrades apply to the entire account, meaning that once an account is upgraded, all existing referral codes and newly created ones will be classified as upgraded Tier referral codes.
User Interface (UI)
To provide a seamless experience, CVI has designed a dedicated referrals page, accessible to both affiliates and traders:
- Create new referral codes to expand your network.
- Gain insights into the number of traders you’ve referred, total open & close volume, and total rebates per referral code.
- Keep track of the history of rebate distribution, complete with dates, amounts, and transaction details.
- Conveniently add and edit referral codes.
- Access real-time data on your total mint and burn volume and your rebates distribution history, complete with relevant dates, amounts, and transaction records.
We are very excited with this Referral Program, providing our community with an opportunity to enhance their engagement and earn rewards for their active participation. We are dedicated to offering the best possible experience, and this program marks a significant step in that direction.
Please bear in mind that the program details and parameters are subject to change at any time by CVI. For the latest updates, visit our communication channels.
CVI V4 Rewards Program
As part of the launch of CVI v4, we are excited to announce a comprehensive rewards program designed to acknowledge and incentivize our community’s engagement. This program includes a variety of rewards, catering to different participant groups within the CVI ecosystem.
Weekly Rewards for Traders
Traders will receive rebates based on their contribution to fees over time. 50% of open/close fees and 10% of funding fees are rebated. Open/close fees are rebated 100% in ARB, while funding fees are rebated 70% in esGOVI and 30% in ARB.
Bonus for Staked GOVI
GOVI stakers will receive an additional bonus, calculated based on unannounced snapshots of staked amounts. The bonus scale ranges as followed:
10k GOVI → open/close 60% rebate, 15% of the funding fees
25k GOVI → open/close 65% rebate, 20% of the funding fees
50k GOVI → open/close 70% rebate, 25% of the funding fees
100k GOVI → open/close 75% rebate, 30% of the funding fees
The rollout of Ultra CVI alongside the Hedged Theta Vault marks an exciting new chapter for CVI. It’s a leap forward that redefines the essence of crypto volatility trading. With these tools, we’re pushing the envelope, offering levels of leverage previously untapped, all while maintaining the integrity and design excellence that CVI is known for.
It’s a complete overhaul of the trading process. The Hedged Theta Vault tackles the twin challenges of high funding rates and limited leverage head-on, creating a landscape where traders can engage more efficiently. Our Referral Program is designed to give back to our engaged and growing community, making your interaction with CVI even more rewarding. These strides are giant leaps in expanding what’s possible in DeFi, delivering a unique trading platform that’s as intuitive as it is powerful.
Welcome to the future of volatility trading!
If you’re still figuring out how to navigate the new platform, we’ve created several tutorials specifically designed to help you:
We would like to invite everyone to join our vibrant community on our social channels. If you have any questions, our team & community are always on stand-by and eager to assist.
Telegram (group): https://t.me/cviofficial
Telegram (channel): https://t.me/cvichannel
v3 Litepaper: https://cvi.finance/files/CVI.v3.Litepaper.pdf