1.Issue volatility tokens by calling the collaterize function. Redemption of volatile tokens by calling theredeem function;

2.Types of collateral supported at startup: DAI and USDC;

3.Quantity of collateral required for casting 1 ETHV & 1 iETHV: 200 stable currency units;

4.No token expires;

5.No liquidation;

6.No prediction machine;

7.0.1% coinage fee and 0.3% redemption fee, and the parameters can be adjusted by Volmex core multi-signature;

8.Global settlement mechanism (settle function), which enables Volmex core multi-signature to set settlement price for volatile tokens, is inspired by MakerDAO's global settlement function. If executed in theory, long volatility can be redeemed by settlementPrice, and short volatility can be redeemed by market value (for example, 200) minus settlement price.

The Volmex.Finance V1 protocol has two key groups of participants: 1) Liquidity Provider (LP) and 2) Traders

⟠ Ethereum Volatility Index: 71.7%

₿ Bitcoin Volatility Index: 63.9%

Trade → https://app.volmex.finance/swap

Mint → https://app.volmex.finance

LP → https://app.volmex.finance/pool

Charts → https://charts.volmex.finance

Mint

The liquidity provider (LP) stores collateral (such as DAI, USDC, etc.) by calling the collateralize function, and casts volatile tokens (such as ETHV and iETHV).

The Liquidity Provider (LP) mints VIX tokens and RVI tokens in proportion. Once LP receives a minted VIX token/Reverse VIX token pair (e.g. ETHV/IETHV), LP can provide liquidity to the Uniswap/AMM pool to earn transaction fees, or sell one of the tokens in the market to make a targeted bet on expected market volatility.

The number of volatile tokens received is based on a simple formula (where N = the stable currency deposited into the agreement): Number of volatile tokens received (e.g. ETHV) = N/200 Number of reverse volatility tokens received (e.g. iETHV) = N/200 In an example scenario, the liquidity provider (LP) deposits 200 Dai and receives one Ethernet Volatility Index token (ETHV) and one Ethernet Reverse Volatility Index token (IETHV).

The liquidity provider (LP) can call the redeem function to redeem an equal proportion of stable currency collateral with volatile tokens.

Traders buy volatile tokens from spot exchanges such as Uniswap.

Foundry cost

There is a coinage fee for minting volatile tokens, which will be paid to Volmex Core Multiple Wallet Address. The current fee rate is set at 0.10%, which can be updated by Volmex Core Multiple Signature.

Redemption fee

Similarly, redemption of volatile tokens also requires a redemption fee, which is currently set at 0.30%, and can be updated by Volmex core multi-signature.

Volmex Labs, the development company building the volmex.finance protocol, is backed by leading market makers and crypto investors including Alameda Research, Three Arrows Capital, CMS Holdings, Orthogonal Trading, Robot Ventures, IOSG Ventures, and more.

At present, the main networks supported by volmex.finance are Polygon, Arbitrum One and ETH mainnet, so you can try to experience it.