How to Make Money on Crypto Volatility Without Directional Bets?

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It's been a pretty boring time pricewise... Calm before the storm? Crypto Volatility Index (CVI) is almost at ATL. If you believe some volatility is coming very soon, you can make money on it. And you don't have to predict if prices will go up or down! See how: 🧵👇

What is Crypto Volatility Index? CVI is a VIX for crypto - an index that tracks volatility. It was created by the COTI team @COTInetwork in partnership with Prof. Dan Galai, the creator of the original VIX. The purpose was to build a “market fear index” for crypto.

CVI ranges between 0 and 200. 0-85 ≈ Low volatility 85-105 ≈ Medium volatility 105-200 ≈ High volatility We are at 56 now - the level not seen for 2 years.

How to make money on CVI? There are two ways: 1⃣ Bet on volatility 2⃣ Profit from others betting on volatility

1⃣ Bet On Volatility If you believe volatility is coming, CVI will increase. Regardless of the direction of the price. Get CVOL tokens that are pegged to the CVI index. Mint on: cvi.finance/ Or buy on SushiSwap if it's cheaper there.

Mind The Funding Fee! CVOL tokens have a built-in funding fee. The lower the CVI, the higher the fee. It's implemented in a form of a daily negative rebase - the amount of your CVOL tokens goes down. Conclusion: Buy CVOL tokens only if you expect volatily to rise very soon.

2⃣ Profit From Others Betting on Volatility If you prefer to be a casino, deposit USDC into Theta Vault. Theta Vault is like $GLP for $GMX - depositors take the opposite side of the traders P&L. Current APR is 36% but you can also lose money when CVI increases by a lot.

Unlike CVOL tokens, Theta Vault is a long term play. In the short term, traders may happen to be profitable at the cost of Theta depositors. But as $GLP has proven, over the long term casino always wins.

Final thoughs: @official_CVI is an interesting new DeFi primitive. Finally some innovation in the flood of boring forks. The Team has already demonstrated their high skills and the roadmap is still full of innovations. Definitely worth watching.

If you want to learn more about @official_CVI and $GOVI token, read this thread from @Slappjakke: twitter.com/Slappjakke/status/1607320888105644042