COTI claimed that cVIX would bring the same capability to the crypto markets that the VIX currently equips traditional traders with to help them determine the stock market’s volatility, and assess risks and quantify fears. However, since the cVIX index has been designed with the defi economy in mind, it utilizes Chainlink architecture and multiple oracles to retrieve real-time price feeds. Such financial data that the oracle provides would then be aggregated, verified and passed to the blockchain node.
COTI believed that cVIX would enable traders, who take a long position on the index, to profit in the event of adverse market conditions. Investors whose position relies upon volatility, meanwhile, can insure themselves against market stagnation.
cVIX will initially support trades and deposits in ETH and USDT and the platform is expected to support other tokens later. It is also expected to migrate from Ethereum to COTI’s Trustchain, proprietary consensus algorithm. A whitepaper containing technical details of cVIX will be released amid the community in the coming weeks.