Volatility Protocol

Volatility Protocol, dVIX, is a family of decentralized volatility indexes optimized for crypto and built for DeFi.

dVIX v0.1 is a protocol that allows for the building of model-free, near real-time volatility index feeds of any decentralized or centralized utility token that has a robust derivatives market. We're making it easy to develop tokenized volatility synthetics using DeFi protocols (like UMA), which unlocks a whole world of novel possibilities for trading and hedging.

We calculate ethVIX using the same methodology that underpins the Cboe Volatility Index® (VIX® Index), the premier volatility benchmark for the U.S. stock market. Built specifically with DeFi in mind, our raw data points and everything used to calculate them are generated and saved to an IPFS-backed log each time a new Ethereum block is confirmed (every ~15.0 seconds), and the index feed is updated roughly once every 15 minutes.

In upcoming releases we'll be releasing a variety of volatility models and tools that allow anyone to publish real-time indexes for any utility token.

TLDR, the dVIX protocol makes volatility synthetics possible.