The CVI platform, the first decentralized Crypto Volatility Index for the digital asset market, has recently announced the addition of two new volatility tokens to its growing list of products.
CVI Launches ETHVOL and CVOL
In a Tuesday press release seen by CryptoPotato, the firm noted that the new volatility tokens – ETHVOL and CVOL – are currently available for trading on its platform and secondary marketplaces.
The first Volatility Token, ETHVOL, is pegged to the platform’s Ethereum volatility index, ETHVI, which tracks the implied volatility on ETH, allowing traders to benefit from the fluctuating price movements of the second-largest cryptocurrency.
Available on Uniswap and QuickSwap
ETHVOL is available on the native CVI platform and the Ethereum-based decentralized exchange (DEX) platform, Uniswap V2.
CVOL, on the other hand, is pegged to the CVI index, and it tracks the implied volatility of the two top coins, BTC and ETH. It is currently available on the Polygon-based DEX platform, QuickSwap.
The CVI team noted that these volatility tokens have introduced a new way of trading volatility while making the platform compatible with the larger DeFi ecosystem.
Users are now able to buy ETHVOL and CVOL tokens to provide liquidity in the ETHVOL-USDC pool on Uniswap and CVOL-USDC pool on QuickSwap.
Subsequently, they can stake their ETHVOL-USDC and CVOL-USDC liquidity provider (LP) tokens on the CVI platform and earn rewards via the platform’s governance token, GOVI.
Per the announcement, buying either of the volatility tokens on the listed secondary markets is equivalent to taking a long position on the ETHVI and CVI indexes with added benefits.
Traders can sell their volatility tokens immediately as there is no lockup period or purchase/sales fees, and they can stake their LP tokens to earn GOVI and Uniswap/Quickswap fees.
Lastly, there is a mint (purchase) and burn (sell) function equivalent to opening and closing positions, where users pay mint and burn fees that go to the GOVI stakers.