{"id":775,"date":"2022-01-13T14:51:39","date_gmt":"2022-01-13T14:51:39","guid":{"rendered":"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/?p=775"},"modified":"2022-02-26T17:58:18","modified_gmt":"2022-02-26T17:58:18","slug":"what-is-the-crypto-volatility-index-cvi","status":"publish","type":"post","link":"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/what-is-the-crypto-volatility-index-cvi\/","title":{"rendered":"What Is The Crypto Volatility Index (CVI)?"},"content":{"rendered":"\n<h4 class=\"wp-block-heading\">The Crypto Volatility Index (CVI) is a decentralized solution used as a benchmark to track the volatility from cryptocurrency option prices and the overall crypto market.<\/h4>\n\n\n\n<p>For those who are not familiar with the term, the VIX is an index that measures volatility in the stock market based on the implied volatility of S&amp;P 500 Index options; it\u2019s also referred to as the \u201cMarket Fear Index.\u201d<\/p>\n\n\n\n<p>In a similar way, the CVI helps users track and trade the 30-day implied volatility of Ether (ETH) Bitcoin (BTC) by using the Black-Scholes options pricing model foster an index that fluctuates between 0 and 200. Black-Scholes is a pricing model used to determine the fair price or theoretical value for a call or a put option based on six variables volatility type of optiont &amp; underlying stock pricing and risk-free rate.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">What Does the Platform Hold for the Future?<\/h4>\n\n\n\n<p>Along with the recent migration from USDT to USDC and a recent integration with investing.com, the founders of CVI have announced the implementation of new and exciting features for the protocoler.<\/p>\n\n\n\n<p>The first, is the launch of volatility tokens via CVOL (Crypto vola &amp; ETHVOL (Ethereum Volatility token). These tokens can be understood as being a wrapper for opening a long position on CVI and a tradable on Ethereum compatible DEXs. The tokens maintain their peg to the value of the underlying following a rebase mechanism with a similar architecture to that of tokens like Ampleforth. The volatility tokens can be used to benefit from arbitrage trading strategies on other compatible DEXs.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cLearning how cryptocurrency works is like learning a new language. It is incredibly difficult at the beginning, but once it clicks it will stick with you forever.\u201d<\/p><\/blockquote>\n\n\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"398\" height=\"280\" data-id=\"3526\" src=\"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-content\/uploads\/2022\/02\/blog-detail-02-1.png\" alt=\"\" class=\"wp-image-3526\" srcset=\"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-content\/uploads\/2022\/02\/blog-detail-02-1.png 398w, https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-content\/uploads\/2022\/02\/blog-detail-02-1-300x211.png 300w\" sizes=\"(max-width: 398px) 100vw, 398px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"398\" height=\"280\" data-id=\"3525\" src=\"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-content\/uploads\/2022\/02\/blog-detail-01.png\" alt=\"\" class=\"wp-image-3525\" srcset=\"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-content\/uploads\/2022\/02\/blog-detail-01.png 398w, https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-content\/uploads\/2022\/02\/blog-detail-01-300x211.png 300w\" sizes=\"(max-width: 398px) 100vw, 398px\" \/><\/figure>\n<\/figure>\n\n\n\n<h4 class=\"wp-block-heading\">Key Takeaways<\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>The Index allows DeFi users to either hedge against or profit from volatility in the crypto market.<\/li><li>The index functions as a crypto version of the VIX (The S&amp;P 500 Volatility Index), a real-time for market index representing the market&#8217;s expectations for volatility forover the coming 30 days.<\/li><li>The index functions as a crypto version of the VIX (The S&amp;P 500 Volatility Index), a real-time for market index representing the market&#8217;s expectations for volatility forover the coming 30 days.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The Crypto Volatility Index (CVI) is a decentralized solution used as a benchmark to track&#8230;<\/p>\n","protected":false},"author":1,"featured_media":777,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-775","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"acf":[],"_links":{"self":[{"href":"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-json\/wp\/v2\/posts\/775","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-json\/wp\/v2\/comments?post=775"}],"version-history":[{"count":0,"href":"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-json\/wp\/v2\/posts\/775\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-json\/wp\/v2\/media\/777"}],"wp:attachment":[{"href":"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-json\/wp\/v2\/media?parent=775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-json\/wp\/v2\/categories?post=775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mthemeus.com\/demos\/wp\/xmoze\/wp-json\/wp\/v2\/tags?post=775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}