New „market fear“ index: traders can bet on crypto volatility
COTI’s new Crypto Volatility Index gives traders the opportunity to profit from the highly volatile cryptocurrency markets.
COTI, a blockchain fintech startup, has launched a new cryptocurrency index that allows traders to profit from market volatility.
The new Crypto Volatility Index, or CVI, brings the traditional „market fear index“ to the crypto market. With it, users can open positions with Tether (UDST).
Gibraltar-based COTI said traders can use the new index to open CVI positions for high and low volatility. „Users who expect volatility to increase Bitcoin Lifestyle can open a CVI position. If they are right, they can make profit by selling their position once the index has risen,“ COTI said.
Traders profit by collecting fees
In contrast, traders who expect volatility to stay low can provide liquidity to the platform. If that is true, traders profit by collecting fees from traders who have opened CVI positions.
CVI liquidity providers must deposit USDT for at least 72 hours. CVI traders must hold an open position for at least 6 hours before selling or closing it.
Users can link their accounts to major wallets such as MetaMask or Trust Wallet. COTI plans to support Ether (ETH) and COTI tokens (COTI) for deposits in the near future.
With the launch of the CVI mainnet, users will also be able to use GOVI, the proprietary governance token of the CVI index, for staking. With the token, users can earn platform fees and participate in voting.