Staking and Rewards on the Crypto Volatility Index

CVI

5 min readJan 31, 2021

The Crypto Volatility Index trading platform has various types of staking, tokens and lucrative rewards.

Here is a guide to help you understand the various options and how APY is calculated:

The $GOVI token

What it is: the governance token for the platform, used for voting and collecting platform fees

How to get it: the $GOVI token was airdropped to $COTI holders and from this point onwards can only be claimed by using the CVI platform

Rewards: users who stake $GOVI collect platform fees

How APY is calculated:

First we calculate the interest rate (r):

[Estimated fees collected for GOVI holders (per day)]*[number of times to be paid in a year (n)]/ [Value of currently staked GOVI tokens]

Example:

Given that:

GOVI price is $1

Estimated fees collected for GOVI holders (per week) = $35,000

Value of currently staked GOVI tokens = $1,000,000

Interest for GOVI tokens (r) = (5,000*365)/1,000,000= 1.83

The APY is calculated as follows:

APY= {[(1 + r/n)^n — 1]*100} (where “r” is the stated annual interest rate and “n” is the number of compounding periods each year)

In the sample above, we would have the following:

APY ={[(1+1.83/365)³⁶⁵ — 1]*100} = 520%

How to claim $GOVI

Go to “Manage your positions” page, click on the “Claim” tab, select the token you have bought your position with and that you want to claim the GOVI reward for. Then click “Claim”. The $GOVI will be sent to your Ethereum address.

How to stake $GOVI

Go to “Manage your tokens” page, click on the “Stake” tab → select the $GOVI token → insert the amount to stake, and click “Stake”.

CVI liquidity tokens (CVI-USDT-LP)

What it is: the LP token for users who provide liquidity on the CVI platform

How to get it: by providing liquidity on the CVI platform, currently available for USDT deposits only.

Rewards: users who stake CVI LP tokens (currently: CVI-USDT-LP) collect $GOVI rewards

How APY is calculated:

First we calculate the interest rate (r):

[Value of yearly distributed GOVI tokens to CVI-USDT LP pool] / [Value of currently staked CVI-USDT LP tokens]

Then we use the number of times to be paid in a year (n). The rewards are calculated per block 6500 times per day, thus we have it 2,372,500 times per year.

Example:

Given that:

GOVI price is $1

Value of staked CVI-USDT LP tokens is $2,000,000

GOVI to be distributed in a year for CVI-USDT LP pool is 1,200,000

Value of yearly distributed GOVI tokens to CVI-USDT LP pool= 1*1,200,000= $1,200,000

The APY is calculated as follows:

r = 1,200,000/2,000,000 = 0.6

APY= {[(1 + r/n)^n — 1]*100} (where “r” is the stated annual interest rate and “n” is the number of compounding periods each year)

In the sample above, we would have the following:

APY ={[(1+0.6/2,372,500)²,372,500–1]*100} = 82%

How to stake CVI LP tokens

Go to “Manage your tokens” page, click on the “Stake” tab → select the $CVI-USDT-LP token → insert the amount to stake, and click “Stake”.

Uniswap LP tokens

What it is: LP tokens staked on Uniswap by users who provide liquidity to selected pairs. These pairs are initially determined by the CVI team and then submitted to a $GOVI holders’ vote. Current incentivized pairs are $GOVI-ETH and $COTI-ETH

How to get it: by providing liquidity to selected pairs on Uniswap (GOVI-ETH, COTI-ETH)

Rewards: users who stake UNI LP tokens collect $GOVI tokens

How APY is calculated:

First we calculate the interest rate (r):

[Value of yearly distributed GOVI tokens to staked COTI-ETH UNI LP tokens]*100 / [Value of currently staked COTI-ETH UNI LP tokens]

Then we use the number of times to be paid in a year (n). The rewards are calculated per block 6500 times per day, thus we have it 2,372,500 times per year.

Example:

Given that:

GOVI price is $1

Value of staked COTI-ETH LP tokens is $1,000,000

GOVI to be distributed in a year for COTI-ETH UNI LP tokens pool is 2,000,000

Value of yearly distributed GOVI tokens to COTI-ETH Staking pool = 1*2,000,000= $2,000,000

The APY is calculated as follows:

r = 1,000,000/2,000,000 = 0.5

APY= {[(1 + r/n)^n — 1]*100} (where “r” is the stated annual interest rate and “n” is the number of compounding periods each year)

In the sample above, we would have the following:

APY ={[(1+0.5/2,372,500)²,372,500–1]*100} = 64%