COTI has announced investing its resources and efforts to develop a first-ever Decentralized stock market volatility index similar to VIX Index. The index would be named as cVIX and would help crypto traders extensively.
It would provide a volatility index of the various cryptocurrencies based on the option prices taking projected market volatility into consideration.
VIX, known as the Volatility Index, measures the markets’ inherent volatile nature, giving an indication of the downward movements.
Market Fear Index
cVIX is a Market Fear Index that would help in gauging the level of volatility in the cryptocurrencies and help the investors to make their trading decisions with the help of some analytical services. The traders can exit and enter the markets based on the cVIX that reflects the risks and dynamism of the currency in the market. The index works on the Decentralised model, which means that it does not depend on any external firm or institution. The index would work autonomously devoid of any involvement from third-party factors. The company said that cVIX would be based on the ChainLink architecture and use several oracles to extract financial information about cryptocurrencies.
COTI Committed To Diminish Challenges of Traditional Finance
COTI is a platform designed to address the challenges faced in traditional finance, including transactional fees, risk, and economic unrest. It provides users the power to carry out trading with its first-of-kind DAG-based protocol. It promises to provide fast, reliable, cost-effective, and scalable infrastructure tailored for real time payments. COTI has now brought the cVIX index that further strengthens the users by making calculated decisions and estimations about cryptocurrencies.
Support for Major Crypto Soon
The users would be able to trade on the cVIX with ETH and Tether token (USDT); however, the system would soon start supporting more cryptocurrencies. There would be a transition from the Trustchain algorithm Ethereum.
Apart from the cVIX index, the company announced that it would also launch a smart decentralized trading system that would help traders trade in short and long positions based on the index without any permission.