New ‘market fear’ index lets traders bet on crypto volatility

New ‘market fear’ index lets traders bet on crypto volatility

COTI, a blockchain-powered fintech startup, has launched a new cryptocurrency index enabling traders to profit from the market volatility.

The new Crypto Volatility Index, or CVI, brings the traditional “market fear index” to the crypto market, allowing users to deposit and open positions with Tether (UDST).

Gibraltar-based COTI explained that the new index allows traders to open CVI positions for high and low volatility. “Users who expect volatility to increase can open a CVI position. If correct, they can take profit by selling their position once the index has risen,” COTI wrote.

In contrast, traders who expect volatility to remain low can provide liquidity to the platform. If correct, traders will profit by collecting fees paid by traders who have opened CVI positions.

CVI liquidity providers are required to deposit USDT for a minimum of 72 hours, while CVI traders must maintain an open position for at least 6 hours before selling or closing it. 

Users can link their accounts to major wallets including MetaMask or Trust Wallet. COTI plans to add Ether (ETH) and COTI token (COTI) as deposit tokens in the near future.

With the CVI mainnet launch, users can also stake and unstake GOVI, which is the native governance token of the CVI index. The token enables users to earn platform fees and participate in voting.

Title: New ‘market fear’ index lets traders bet on crypto volatility
Sourced From: cointelegraph.com/news/new-trading-index-lets-traders-bet-on-crypto-volatility
Published Date: Tue, 19 Jan 2021 13:40:20 +0000

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Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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