Ive been thinking about this idea for abit and I might start building it if others are interested aswell. **Essentially, the idea is that it enables you to take a position in the volitility of an asset.** E.g. If you think BTC volitility will increase over a given period, you can stake this position and be rewarded if you are correct.
Im aware that a similar protocol exists currently (CVI) but I dont think it does a very good job. This index is only for 30 days forward-looking, and is for ALL crypto rather than specific assets like BTC or ETH.
I want to make something that is flexible in time period (ie. could be 1 hour, 1 day, 1 week, 1 month), and would be for specific cryptos.
Some usecases of this protocol could be:
1. Risk management
1. Hedging strategies
1. Market sentiment analysis
1. Trading strategies
Personally the reason why I want to create this is so I can leverage trade the volitility of alt coins.
If you are interested fill out this form.
If enough people are excited I will start building!
2 thoughts on “Anyone interested in a BTC/ ETH Volitility Index protocol?”
sounds interesting, it’ll probably be better to ask in the forums / discords of decentralized derivative protocols, you can frame it as a protocol extension proposal