COTI, a blockchain-powered fintech startup, has launched a new cryptocurrency index that allows traders to take advantage of the market volatility.
The new Crypto Volatility Index, or CVI, brings the traditional ‘market anxiety index’ to the crypto market, allowing users to deposit and open positions with Tether (UDST).
Gibraltar-based COTI explained that the new index allows traders to open CVI positions for high and low volatility. “Users who expect volatility to increase can open a CVI position. If correct, they can make a profit by selling their position once the index is up, ”wrote COTI.
In contrast, traders who expect volatility to remain low can provide liquidity to the platform. If correct, traders will benefit by collecting fees paid by traders who have opened CVI positions.
CVI liquidity providers are required to deposit USDT for a minimum of 72 hours while CVI traders are required to hold an open position for at least 6 hours before selling or closing it.
Users can link their accounts to major wallets including MetaMask or Trust Wallet. COTI plans Ether (ETH) and COTI token (COTI) as deposit tokens in the near future.
With the launch of the CVI main net, users can also enable and disable GOVI, the native governance token of the CVI index. The token allows users to earn platform fees and participate in voting.