In fall of 1993, the Chicago Board Options Exchange (CBOE) introduced the VIX (CBOE Volatility Index) to provide an estimate of short term US stock market volatility, as well as create a standard for futures and options contracts to be written.
Today, December 13, 2020, is a historic day in the world of finance. ETHV Index v1, an index designed to measure the 30-day implied volatility of Ether (ETH), is now live on the Ethereum mainnet. ETHV Index v1 is the first volmex.finance index. volmex.finance is a family of volatility indices and (in-development) non-custodial trading platform built on Ethereum.
Volatility derivatives are a core pillar of modern finance, as they provide a cost-effective means for hedging market volatility risk. volmex.finance brings volatility hedging to Ethereum, unlocking a myriad of new DeFi applications and building blocks.
Some examples of how ETHV Index can be used:
- Chad Capital believes Ether volatility is relatively low, so the firm buys ETHV Index v1 futures or calls.
- Chad Capital believes ETH volatility is high, so the firm sells ETHV Index v1 futures or buys ETHV Index v1 puts.
ETHV Index v1 is published to the Ethereum blockchain every time the index is queried on-chain. ETHV Index v1 data is also available on the volmex.finance website. The index calculation currently requires off-chain data.
How to query the ETHV Index v1 with Etherscan
IMPORTANT: ETH used for ETHV Index v1 queries cannot be withdrawn. ETH accidentally sent to the contract cannot be withdrawn. This software is in beta and is provided on an "as is" and "as available" basis. volmex.finance does not give any warranties and will not be liable for any loss, direct or indirect through continued use of this software.
- Enter the contract address into Etherscan.
2. Navigate to the Contract section, connect your Web3 wallet, and then select Write Contract.
3. Enter 0.006 ETH in the updateETHV field, select write, and confirm the transaction in MetaMask.
4. Navigate to the Read Contract tab to view the current ETHV Index v1 value.
More to come soon. Stay tuned!