COTI Cryptographic volatility index The project is seeking greater relevance this year, and many major updates will arrive that will seduce many investors to bet on the ups and downs of the crypto market.
CVI is designed to help DeFi users hedge and profit from the extreme volatility of the cryptocurrency market.You can think of this as a crypto-oriented version of S & P 500 Volatility Index (VIX)This is a real-time market that tracks market volatility forecasts over the next 30 days.
COTI Medium blog post It created a CVI to provide a way for DeFi market participants to trade and take positions with the perceived volatility of the crypto market. The platform debuted last year and has already proven to be a big hit, with a total of over $ 13.4 million locked so far.
To date, CVI has already released many new features in 2022, including: CVI staking V2 With Polygon and Arbitrum, we provide users with a way to avoid the high gas costs of Ethereum. In addition, the first community vote has penetrated governance and the start of liquid bonding is imminent.In addition, it has Introduced GOVI will stake V2 and ensure that Polygon and Arbitrum distribute 28,000 $ GOVI Governance Tokens each week. In addition, there is a $ GOVI repurchase program that confirms 85% of the platform fees used by $ GOVI tokens on the market and distributes them to traders. Liquidity provider and $ GOVI stacker as a reward.
What’s next?
The next major update to CVI is the introduction of automatic compound interest for $ GOVI staking rewards. This allows stackers to see automatically synthesized rewards on the platform. This means that all stakers will always be rewarded and will be rewarded more without having to re-bet $ GOVI tokens each time they collect.
“In the long run, the auto-synthesis feature will save both time and money (through reductions in network charges) while ensuring token valuation,” CVI explains in a blog post.
This is followed by the long-awaited debut of liquidity bonding, which was voted by the community earlier this month. Both Ethereum and Polygon will be available in the coming days. Olympus Pro Bond Program It provides the CVI protocol with a way to own and manage its liquidity and create additional sources of indexing. This will allow users to trade $ GOVI tokens at a discounted rate, incur more transaction fees and add more value to CVI’s finances. Another benefit is increased exposure to ETH pair assets in the liquidity pool.
Undoubtedly, investors are also looking forward to the promised permanent loss protection feature that will be available in the second quarter. “Our permanent loss protection allows liquidity providers to limit their exposure to the volatility of their underlying token deposits,” CVI said.
But even more exciting is the launch of Theta Vault, which is promised next quarter. This is the next evolution of CVI’s liquidity pool, making it available to third-party decentralized exchanges. CVI believes this offers two important benefits. Most important of these is the increased scalability and liquidity of volatility tokens, providing investors with a new way to trade crypto market volatility.
As CVI explains, deeper liquidity is essential as traders have less slippage when exchanging tokens. However, it is difficult to provide liquidity for CVI volatility tokens. One of the unique things about tokens is that there is a funding fee. That is, it is not designed to be held by everyone for quite some time. Therefore, it would be impossible to scale up the liquidity of DEX without a mechanism for long-term pairing of volatility tokens. Theta Vault provides a way to do this with its unique design.
The second major benefit it brings is the additional rewards to liquidity providers. LPs can hold DEX volatility tokens without any fees, so you can profit by receiving a fee for each swap. This means a second profit stream in addition to the usual staking rewards.
“By depositing in the vault, LPs will be able to receive both staking GOVI rewards and DEX liquidity pool fees,” CVI explained.
It promises to be a big deal, but CVI insists it won’t give up. By the time the third quarter approaches, it is ready to launch the industry’s first and first multi-chain VOL token. These are built on the release of the first volatility tokens (Ethereum ETHVOL and Polygon CVOL) last November and are designed to reduce friction for users who want to move their tokens from one chain to another. .. According to CVI, the first multi-chain VOL token will be launched on Arbitrum and other networks, and compatible Theta Vault can be applied to each.
With the last major update of the year, the Leverage Volatility Token will arrive in the fourth quarter. The ultimate goal of CVI is to create an ecosystem for the cryptocurrency volatility market equivalent to VIX. Its leveraged volatility tokens are comparable to VIX’s most widely used product, the leveraged ETNS. The promise of high capital efficiency gives traders and hedgers the opportunity to trade short-term in volatility and intraday trading, increasing their chances of increasing profits.
