A variety of enterprise capital giants have accomplished a financing spherical for Ethereum-based volatility and derivatives protocol Volmex Finance.
In line with a March 17 announcement from Volmex Labs, the financing spherical was contributed to by a number of main decentralized finance enterprise capital corporations together with Alameda Analysis, Three Arrows Capital, Robotic Ventures, CMS Holdings, IOSG Ventures, D64 Ventures, and Fourth Revolution Capital along with a variety of particular person angel traders together with BarnBridge’s Tyler Ward. The quantity raised was undisclosed.
4RCapital co-founder Keegan Selby posted on Twitter:
“Extremely excited to back Volmex Finance as they introduce volatility indices, a core financial primitive of the quadrillion dollar global derivatives market, to Decentralized Finance.”
The project, launched in December 2020, goals to deliver volatility hedging to Ethereum which is able to unlock a variety of new DeFi functions and funding alternatives.
It has launched an index designed to measure the 30-day implied volatility of Ethereum known as the ETHV Index v1. It may be utilized in an identical method to the Chicago Board Choices Alternate’s VIX which offers an estimate of short-term U.S. inventory market volatility.
When Ethereum market volatility is low, traders should purchase ETHV Index v1 futures or calls, promoting them when market volatility will increase. The group behind Volmex Finance defined:
“Volatility derivatives are a core pillar of modern finance, as they provide a cost-effective means for hedging market volatility risk.”
In an effort to keep away from the costly charges related to transacting on the principle Ethereum community, the protocol will leverage Optimism layer-two scaling expertise to make index querying and future buying and selling performance cheaper and quicker.
Optimism has been deployed on a variety of DeFi platforms just lately together with Synthetix, MakerDAO, and it’s rumored to offer the scaling for Uniswap’s extremely anticipated model 3.
Volmex additionally has a Bitcoin-based by-product product known as the BTC Index v1 whereby merchants can leverage the protocol to precise a view on the anticipated volatility of the underlying asset.