About Volmex Airdrop
Volmex Airdrop is a protocol for tokenized volatility built on Ethereum. The protocol enables VIX-like indices for crypto assets and trading functionality powered by Ethereum. Volmex doesn’t have an own token yet and could likely launch one in the future. Minting tokens and providing liquidity may make you eligible for an airdrop if they launch an own token.
Volmex.finance brings robust volatility products to Ethereum, unlocking a myriad of new DeFi applications and building blocks. The Volmex protocol can be used to create volatility indexes and tradable tokens (tracking both implied volatility and realized volatility) for crypto assets.
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.
| Platform | Airdrop Ends | Max. Participants | Website |
|---|---|---|---|
| ETH | N/A | Unlimited | Click Here To Visit |
Liquidity Providers
Mint volatility tokens
Depositing collateral to mint volatility tokens, liquidity providers are an essential component of the protocol. Volmex finance liquidity providers deposit stablecoin collateral (DAI at launch and soon more collateral types) and mint proportional amounts of volatility index tokens and inverse volatility index tokens.
The volatility index token and inverse volatility index token are two parts of a whole, which together can be redeemed for proporitional stablecoin collateral required to mint (less a 0.3% redemption fee). 250 DAI mints ~1 volatility index token (technically 0.999, less the minting fee) and ~1 inverse volatility token. This ratio is set to 250 for both BTC and ETH volatility markets.
Liquidity Provision
Minted volatility tokens can provisioned to Uniswap pools (e.g. ETHV / USDC or iETHV / USDC) to earn trading fees. Liquidity is concentrated among three primary liquidity pools for each index.
Supported Collateral
Currently, DAI and USDC are supported as collateral. Volatility tokens minted with DAI are fungible with volatility tokens minted with USDC. Redeemers can select which asset they want to redeem for when redeeming. The Volmex web app displays how much USDC and DAI are available for redemption in the Volmex contracts.
Global Settlement
A key feature of the Volmex protocol is the global settlement or settle function, which enables the Volmex.finance core multi-sig to shut down the system so that outstanding volatility tokens become a claim on the underlying collateral of the system. Inspired by MakerDAO’s global settlement feature, global settlement similarly provides the Volmex protocol flexibility and is conducive to a healthy peg. Global settlement is intended to be a last resort, though can certainly be used.
Global settlement provides the ability to settle the Volmex Protocol contract at a specific price, settlement Price. Once the settle function has been executed by the volmex.finance core multi-sig, the redeem function is disabled and the redeem Settled function is enabled. At this point, Ethereum Volatility Index Tokens (ETHV) (or other volatility tokens) are redeemable for the settlement Price. Conversely, the Inverse Ethereum Volatility Index Token (iETHV) would be redeemable for the amount of collateral required to mint one of each token less the settlement Price.
Methodology
At a given time, volmex.finance indices factor in eight options which meet the following criteria:
- In-the-money call and put closest to 15 days from expiration
- Out-of-the-money call and put closest to 15 days from expiration
- In-the-money call and put closest to 45 days from expiration
- Out-of-the-money call and put closest to 45 days from expiration
Volmex Options data is sourced in real-time from Deribit, the leading crypto options exchange. By running respective data through an inverted Black-Scholes formula, an output is generated (current index value), which aims to measure the 30-day implied volatility of the underlying asset (e.g. ETH, BTC, etc). The index output is the mean of the IVs.