This is the second part in the Moret Intro series. In the last session, we talked about how easy it is to trade crypto options on Moret. As experienced traders accumulate options in their portfolio, it is natural for them to manage their exposure to volatility. There are also demands for crypto investment that is counter cyclical to the broad market, i.e. something that increases in values when everything else goes down. To this end, Moret offers the innovation of volatility tokens which track their values to the prevailing volatility levels of crypto prices.
Take 1-month volatility as an example, the annualised Ethereum price volatility level was extremely high, over 300% a couple of years ago and since then abated and range-bounded within somewhere between 30% and 100%. We can observe that volatility is both stable and mean-reverting, providing an ideal investment opportunity for crypto investors.
In Moret’s trader app, the end point for trading volatility tokens is the Volatility page.
Users can choose between Buy or Sell volatility tokens which can be specified by 1) the underlying crypto (either Ethereum or Bitcoin) and 2) Expiry, which can be 1 day, 7 days or 30 days at the moment.
The trading app will calculate how much Volatility tokens can be exchanged for a specified Dollar Amount which is paid/received in USDC.
A Trade Overwiew widget helps confirm the details of the exchange. A link to the Polygonscan transaction page will be provided once the transaction is mined successfully.
The volatility tokens can not only be traded on Moret, but also exchanged in third-party DeFi exchanges in the future. In addition, these tokens are payable for crypto options on Moret, which is also how their values are stabilised around the prevailing volatility levels.
So here is the simple and easy guide on how to trade volatility tokens on Moret. Please contact us on Telegram (@moret_options), twitter (@moret_io) and Discord (@moret) to find out more.
