Moret has launched two sets of volatility tokens, all ERC20-based on Polygon chain, whose values are linked to the actual volatilities of ETH and BTC over periods of 1 day, 7 days and 30 days. These tokens are ETH1, ETH7, ETH30 as well as BTC1, BTC7, BTC30.
Anyone can buy and sell these tokens on Moret website based on the volatility values, which has not been possible elsewhere. The prices for these tokens are adjusted according to the ratio between the amount of purchase/sell and the total values locked in the liquidity pools. These tokens can either be traded directly on other DeFi exchanges, or into at-the-money crypto options on Moret.
The volatility tokens are first-of-kind in the DeFi space.
It’s a well-known fact that volatility is relatively stable and provides key benefits to crypto players:
- The pricing stability of volatility makes it a quasi-stable coins as the annualised volatility levels bounce around 100% over the years.
- The volatilities usually rise when the market turns red, thus giving investors extra protection when the crypto prices drop.
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