TrustPad Honorary Alumni: Volatility Protocol - Presale Allocation Competition
TrustPad’s main mission is to support projects that are bettering the blockchain ecosystem. As you will see from the IDOs lined up, these typically address pain points that derive from the ‘real world’ or ones that pervade the blockchain ecosystem itself.
Our team, with the support of tokenova, invests much time in connecting with projects to bring them to the TrustPad community, and we hope you can see the results in the Pools we have listed already.
Yet sometimes the stars don’t align and we miss out on launching a project which fully shares our values. This is the case with Volatility Protocol, a project innovating in the space, bringing sophisticated mechanisms from Centralised Finance and taking them even further within DeFi.
Introducing the vision of Volatility Protocol $VOL
As the Decentralised Finance space develops and progress towards mass adoption continues, we are seeing a new wave of thought leadership come into the market as concepts from Centralised Finance are applied by individuals and teams looking to innovate on the blockchain. This is the case with the team behind Volatility Protocol, who have taken a very popular mechanism from centralised finance - the volatility index (VIX), one of the most common indices referred to on Bloomberg and beyond - and have developed an even more sophisticated solution tailored to the decentralised nature of blockchain technology.
This marks a seminal moment for the blockchain space, and TrustPad are therefore recognising Volatility Protocol as an Honorary Alumni Member to champion them as blockchain pioneers.
Volatility indexes go beyond simply tracking groups of assets as they can be harnessed as products in their own right to trade with, creating an entire microcosm of possibilities. Volatility Protocol also go one step further by creating inverted volatility indices, allowing users to enter short positions with ease, and without having to trade on margin.
TrustPad Community Access to Volatility Protocol’s $VOL Public Sale on MISO
To support our Honorary Alumni Member, we have 200 whitelist spots available to participate in the $VOL public sale that Volatility Protocol are holding exclusively on MISO, SushiSwap’s launchpad.
To participate please complete the below form. The form also includes details on what winners will have to do to entitle them to the airdrop.
Deadline for submissions: 15 June 11:00 UTC
Markets and Volatility through time
1602: The first modern stock, for the Dutch East India Company, was traded on the Nieuwe Brug in Amsterdam, the Netherlands. Nine years later in 1611, under a roofless courtyard in Amsterdam, the world’s first full blown stock market had become established.
Centuries went by with no consensus on how to package market volatility…
1993: The initial Volatility Index (VIX) was released by Cboe Global Markets. At the time, the index only took into consideration the implied volatility of eight separate S&P 100 put and call options. In its modern form, the VIX assesses the relative strength of near-term price changes of the S&P 500 index (SPX). Because it is derived from the prices of SPX index options with near-term expiration dates, it generates a 30-day forward projection of volatility. Volatility, or how fast prices change, is often seen as a way to gauge market sentiment, and in particular the degree of fear among market participants.
The rise of cryptocurrency…
2009: the first cryptocurrency exchanges that were made were purely to testing mode and without a specific market value. The first recognised transaction between two people occurred on January 12, 2009 between Satoshi Nakamoto and Hal Finney, a developer and crypto activist. By 2010, within a year, Bitcointalk launched, offering a floating exchange rate for bitcoin. Buyers could purchase bitcoin by sending another user U.S. dollars via PayPal while Bitcoin Market would hold the seller’s bitcoin in escrow until the seller received their money.
Just twelve years later…
2021: DeFi’s Volatility Protocol is launched, publishing robust Volatility Index Feeds that can be used to build synthetic assets, manage portfolio risk, and gauge market sentiment for popular tokenised assets. Starting with a volatility index for Ethereum network (volETH), the team are developing indexes for other blockchains that align with the framework and ethos of the ecosystem, expanding beyond their foundational approach which was based off of the Cboe Global Markets method.
Volatility Protocol are doing this by moving away from VIX-style calculations, which currently lean too heavily on centralised data sources. This is an important step because blockchain revolves around transparency, community, and decentralisation. Without reservation, Volatility Protocol are charging ahead on the path to being DeFi’s first, community-owned, fully decentralised suite of on-chain volatility products.
How does Volatility Protocol’s ‘volETH’ work?
volETH is a model-free, real-time measure of the price volatility implied by the ETH options market. This generates a 14-day expected volatility of ETH. It offers traders a way to take long positions on ETH volatility.
But why stop there?
ivolETH: an inverted volatility index
ivolETH is the inverse of volETH. It offers traders a way to take short positions on ETH volatility. When volETH moves up ivolETH moves down by an equivalent percentage, and vice versa.
ivolETH not only makes taking a short position easier, it also offers numerous affordances for other DeFi participants. Minting equal USDC values of volETH and ivolETH is a great way for liquidity providers and arbitrageurs to take near delta-neutral positions.
For more info on the mechanics, check out Volatility Protocol’s FAQ section:
We are excited to welcome Volatility Protocol into the TrustPad community as an Honorary Alumni Member, and are pleased that this opportunity will enable $TPAD holders who have an interest in the progression of blockchain technology to get a stake in the project at an early stage.
Join Volatility Protocol
TrustPad has been founded to aid the growth of the blockchain ecosystem in a safe and sustainable way. TrustPad is proudly partnered with GD10 Ventures, BlockSync Ventures, X21 Digital, AU21 capital, exNetwork Capital, Wealth Union, Twin Apex Capital and 4SV.
TrustPad is different to other launchpads. A ‘quality not quantity’ approach ensures that projects launched through TrustPad have real long term value. This will provide the TrustPad community with sustainable development, attracting a larger community for both $TPAD and the projects launched on the platform.