It appears that there’s no limit to the things that Ethereum makes possible. After a plethora of exciting and arguably strange things, it seems that volatility – a measure of the rate of change in asset’s prices has been tokenized also. Enter Volmex Finance!
Ethereum’ mission is tokenizing everything, even the ones outside the conventional limits. It’s for this reason that Volmex Finance is introducing “volatility derivatives indexes” allowing people to bet on volatility and bring another mainstream finance feature to DeFi.
The best part? It’s all decentralized and non-custodial. Secondly, it’s also composable with other DeFi protocols. What are we trying to do here? It’s simple. Hedging against volatility and making an otherwise negative thing useful for us.
How Does Volmex Finance Work?
Volmex Finance current products are ETHV Index v1 and BTCV Index v1. They are essentially bets on the volatility on the world’s largest two cryptocurrencies by marketcap and liquidity. The data is currently calculated off-chain, but oracles will be integrated in the future. How does it work?
Let’s say that you believe that Ethereum volatility is going to be relatively low in a given time frame, you buy ETHV Index v1 for low volatility. If you believe otherwise, you buy buy the corresponding calls. Volmex Finance will add more products in the future, especially for high-cap tokens.
The protocol is actively working to scale itself through Optimism Layer 2 solution on Ethereum. It’s highly encouraging because most DeFi protocols usually start out late, once they get sufficient traction. Volmex Finance has acted proactively. However, the protocol is still in it’s initial stages.
Volmex Finance has recently secured large funding from well-known institutional investors and funds. These include but not limited to Three Arrows Capital, Alameda Research, Robot Ventures, CMS Holdings, Orthogonal Trading, IOSG Ventures, D64 Ventures, DeFi Technologies, Fourth Revolution Capital, and Coral DeFi.
