- COTI’s Crypto Volatility Index is now live.
- The governance token of the platform is GOVI.
COTI’s Crypto Volatility Index is now live. This was made known through an announcement by the company earlier today. The index took its inspiration from the already existing Stock Market volatility index.
The stock market volatility index commonly referred to as VIX, usually measures the financial industry’s volatility rate and what professionals think of the S&P 500. This essentially means the stock index tracks the “options market” and allows traders to bet on assets’ performance.
According to the announcement, the crypto volatility index would also allow traders to open new positions and contribute to the liquidity of USDT, which is a similar function to VIX. Here, traders can open positions on the index when they think the volatility is going to increase. Once their permutation is correct, they are then allowed to sell these positions. The caveat here is that they must have held this position for at least six hours.
Traders could also predict the volatility rate going down. In this case, they have to supply liquidity to the index —this liquidity must be on the platform for at least 72 hours. And if their prediction is right, they would receive payment from other traders who might have opened trades on the platform.
COTI’s crypto volatility index governance token is GOVI
The governance token of the crypto volatility index is GOVI. Holders would use the token to vote on essential matters like the type of asset that can be traded on the platform, the amount of leverage, and other essential purposes.
Holders of the token would also be able to stake and in-stake the token. This would allow them to earn fees and participate in voting on issues about the system.
COTI has stated that the platform would soon add Ethereum, and COTI has deposit tokens. This would complement the current deposit token, which is USDT.