Version 2.0 of the Crypto Volatility Index is Now Live!

cvi.finance

4 min readJul 29, 2021

TLDR

The new version of CVI is now live and includes:

Revamped UX
USDC platform
Margin trading (on the Polygon network)
Volatility Tokens on DEXs
Rebalancing of lockups and rewards: shorter lockups, balanced rewards

After extensive months of planning, designing and development, we are thrilled to announce the launch of the CVI V2. This new version brings you some amazing improvements and new features:

Rebalancing lockups and rewards

As part of the platform upgrades, we have also rebalanced the fees mechanism, and added a feature of dynamic rewards for traders. In addition, we have reduced the liquidity providers’ lockup from 72 hours to 48 hours.

USDC Platform

We have added a USDC platform to the new version, in which you can now open positions, provide liquidity and stake your CVI USDC liquidity tokens through CVI. New features such as margin trading, will be available at first via the USDC platform.

Margin Trading and improved capital efficiency

As recently published, Margin Trading has been deployed on the CVI trading platform and the

UX for Margin Trading is now available as well. Using leverage, traders now have an optimized capital efficiency to their trades.

This development makes it possible for traders to leverage their USDC positions on the Polygon network by X2 (and X3 at a later stage), thus allowing them to access greater sums of capital to enhance their trading strategies. Hence, successful trades are bound to generate larger profits compared to unleveraged trades, which increases the capital efficiency for the platform’s users as they risk less funds when the margin trade .

Volatility Tokens and composability

Volatility tokens are a huge milestone that bring a new and innovative concept to trade volatility, while making CVI truly composable to the greater Defi ecosystem. The architecture is based on funding fee adjusted leveraged rebased volatility tokens. The token is adjusted by funding fees and is being rebased to keep it pegged to the index.

In addition, arbitrageurs can mint and burn tokens, thereby keeping the token pegged to its intrinsic value in the CVI platform.

By combining these two methods. The volatility token will be pegged to the index over time. The amount of volatility tokens held as a user’s position is modified based on the CVI. The funding fee paid is adjusted by rebasing as well.

The first Volatility token we launched is ETHVOL (USDC-ETH), to be traded on any Ethereum based DEXs, attracting the attention of traders, DEXs and Arbitrageurs when there is a difference in prices between the two markets (mint/burn due to prices on secondary markets). In addition, arbitrage related operations on the main platform (mint \ burn) will result in an increase of collected fees (open \ close position).

Next Volatility token to be launched is CVIVOL, which will be traded on any Polygon supported DEXs.

Using volatility tokens, liquidity providers on DEXs can protect themselves from Impermanent Loss on Liquidity Pools. For example, buying a ETHVOL token on Uniswap will protect a liquidity provider against impermanent loss on USDC:ETH pool on Uniswap. This is huge.

Read the full document about Volatility Tokens here: https://cviofficial.medium.com/volatility-tokens-a-new-way-to-trade-volatility-with-the-crypto-volatility-index-b00049372dbe

Revamped Design

Thanks to your feedback, we were able to redesign the CVI platform, with an easy-to-use UI/UX that makes the Crypto Volatility Index platform “smoother” and more efficient for traders.