Plenty of enterprise capital giants have accomplished a financing spherical for Ethereum-based volatility and derivatives protocol Volmex Finance.
In accordance with a March 17 announcement from Volmex Labs, the financing spherical was contributed to by a number of main decentralized finance enterprise capital companies together with Alameda Analysis, Three Arrows Capital, Robotic Ventures, CMS Holdings, IOSG Ventures, D64 Ventures, and Fourth Revolution Capital along with various particular person angel traders together with BarnBridge’s Tyler Ward. The quantity raised was undisclosed.
4RCapital co-founder Keegan Selby posted on Twitter:
“Extraordinarily excited to again Volmex Finance as they introduce volatility indices, a core monetary primitive of the quadrillion greenback world derivatives market, to Decentralized Finance.”
The venture, launched in December 2020, goals to carry volatility hedging to Ethereum which is able to unlock various new DeFi functions and funding alternatives.
It has launched an index designed to measure the 30-day implied volatility of Ethereum referred to as the ETHV Index v1. It may be utilized in an identical solution to the Chicago Board Choices Change’s VIX which supplies an estimate of short-term U.S. inventory market volatility.
When Ethereum market volatility is low, traders can purchase ETHV Index v1 futures or calls, promoting them when market volatility will increase. The staff behind Volmex Finance defined:
“Volatility derivatives are a core pillar of contemporary finance, as they supply an economical means for hedging market volatility threat.”
To be able to keep away from the costly charges related to transacting on the primary Ethereum community, the protocol will leverage Optimism layer-two scaling know-how to make index querying and future buying and selling performance cheaper and sooner.
Optimism has been deployed on various DeFi platforms not too long ago together with Synthetix, MakerDAO, and it’s rumored to supply the scaling for Uniswap’s extremely anticipated model 3.
Volmex additionally has a Bitcoin-based by-product product referred to as the BTC Index v1 whereby merchants can leverage the protocol to precise a view on the anticipated volatility of the underlying asset.