Earn Profit in the Current Market Volatility — KuCoin AMA With CVI
Overview
- Crypto Volatility Index (CVI) is a revolutionary and first-of-its-kind decentralized Crypto Volatility Index for the crypto market. The CVI allows users to hedge themselves against market volatility and impermanent loss. CVI is a full-scale decentralized ecosystem that brings the sophisticated and very popular “market fear index” into the crypto market. It is created by computing a decentralized volatility index from cryptocurrency option prices, together with analyzing the market’s expectation of future volatility.
Dear KuCoin Users,
Time: May 31, 2021, 10:00-11:11 (UTC)
KuCoin hosted an AMA (Ask-Me-Anything) session in the KuCoin Exchange Group with the team from COTI who introduced what CVI is and the platform’s governance token, GOVI.
Project Introduction
Crypto Volatility Index (CVI) is a revolutionary and first-of-its-kind decentralized Crypto Volatility Index for the crypto market. The CVI allows users to hedge themselves against market volatility and impermanent loss. CVI is a full-scale decentralized ecosystem that brings the sophisticated and very popular “market fear index” into the crypto market. It is created by computing a decentralized volatility index from cryptocurrency option prices, together with analyzing the market’s expectation of future volatility.
Official Website: https://cvi.finance
White Paper: https://cvi.finance/files/cvi-white-paper.pdf
Follow CVI on Twitter and Telegram.
Guests:
Oriane Maire — COTI Marketing and Community Manager
Tomer Armarnik — COTI Software Engineer
Yoni Neeman — COTI Chief Innovation Officer
Costa Chervotkin — COTI Product Manager
Q&A from KuCoin
Tomer: Greetings, my name is Tomer Armarnik. I hold a BSc degree in electrical and electronic engineering and computer science from Tel Aviv University. I have been a software engineer for over 10 years in the fields of telecommunication, CRM and now excited to experience the blockchain fields at its forefront.
Oriane: Hello to all the KuCoin community! I am Oriane Maire, I am COTI’s head of support and community. I’ve been with COTI from the very start and therefore I am the “go to” contact if assistance is needed in any subject related to COTI or CVI. I have extensive experience in the customer support industry and one of my greatest joys is to see COTI’s community growing day by day!
Costa: Hi everyone, I’m Costa Chervotkin. I have more than 7 years of product manager experience from various fintech companies and I've been part of the COTI team for more than 3 years. I hold a BSc in industrial engineering and management from Ben-Gurion University.
Yoni: Hey everyone, I'm Yoni Neeman, a software engineer and DeFi enthusiast. I’ve been part of the dev team at COTI for the last 3 years and I am COTI’s chief innovation officer. I hold a BSc in computer science from Tel Aviv University. In the last decade I’ve focused on building fintech applications and was captivated by the cryptosphere and the opportunities to build upon it.
Q: For the people that haven’t yet heard of CVI – tell us what it is and what are you trying to build?
Oriane: The Crypto Volatility Index (CVI) is a revolutionary and first-of-its-kind decentralized Crypto Volatility Index for the crypto market. https://www.cvi.finance
The CVI brings a new set of tools to the DeFi space. Users can:
- buy a position in the index if they believe volatility in crypto is about to grow, as a speculation or as a hedge for their portfolio
- become a platform liquidity provider to earn fees whether they feel that volatility will decrease or remain the same
- protect their position as liquidity providers on DEXs like Uniswap against impermanent loss (caused by major fluctuations in assets price, regardless of the direction)
- earn $GOVI, our DAO token, on all of the above
CVI is an open-source code and available on Github. Our intent with open sourcing CVI is for further trading instruments to be built upon the CVI index by the crypto community.
The $GOVI token is a governance token for the protocol and platform.
Holders of $GOVI share platform fees and will vote on matters such as the tradable assets, leverage used, deposit amounts, platform fees, and more.
The idea is that $GOVI will also be the governance token for further development and tools we will create for DeFi, whether it be new indexes or trading instruments.
$GOVI distribution is a fair launch distribution model: no pre-mine, no token sale, no fundraising.
Q: Can you tell us about the origin of the idea for CVI? What was the inspiration?
Oriane: Most of the team is involved, however, CVI was conceptualized by Dr. Nir Haloani, COTI’s CTO.
We were brainstorming about several DeFi ideas that align with COTI’s mission and CVI was the one we thought that both made the most sense from COTI’s perspective, and also offered sufficient value to the overall crypto community. Feeling that this index was missing and can be served for various purposes, we have decided to make it as our upcoming venture.
Q: Tell us about the team working on the project, what are their backgrounds? How many of you are currently engaged in it?
Oriane: The COTI team developed CVI. However, the code, the formulas, the adaptors, the oracles and everything else as mentioned earlier are available on Github in a fully transparent manner.
As with every product, it involves various people from different disciplines, product designers, market researchers, external consultants, algorithms people, software developers - both front- and back-end, integration testers, auditors, technical writers and public relations. Basically, let’s say that it was a significant team effort with plenty of late hours, bringing everything together and continuing to extend it.
Finally, we recently shared with immense pleasure that Professor Dan Galai, the creator of the VIX index, joined the Crypto Volatility Index’s board of advisors:
We feel that having the original creator of the VIX come on board the CVI train is a clear sign that we are on the right track and we’re excited to continue and develop the CVI and the $GOVI token.
Q: How can we use CVI and for what exactly?
Tomer: We have created and released CVI and $GOVI to bring the very popular "Market Fear Index" from the traditional markets into the crypto space.
We have created CVI as a decentralized index and permissionless trading platform so that anybody can use it and either trade crypto market volatility directly, or use it as a hedge in a wider crypto portfolio.
We have recently published an article showing how the Crypto Volatility Index allows you to earn money in the current market volatility.
During these turbulent times in which volatility is spiking and all of crypto is deep in the red, the Crypto Volatility Index (VIX for Crypto) allows you to preserve your capital and even profit from market volatility:
In this article, we demonstrate how traders could have potentially made up to 92% profit during the last period, in which volatility has spiked. If you want to take advantage of the current market volatility, this is how.
So, as mentioned before, the CVI brings a new set of tools to the DeFi space.
- Users can buy a position in the index if they believe volatility in crypto is about to grow, as a speculation or as a hedge for their portfolio.
- They can become a platform liquidity provider to earn fees whether they feel that volatility will decrease or remain the same.
- Another option would be to protect their position as liquidity providers on DEXs like Uniswap against impermanent loss (caused by major fluctuations in assets price, regardless of the direction).
- Obviously they can simply use it to earn $GOVI, our DAO token, on all of the above.
Q: What are the use cases for GOVI tokens?
Oriane: The $GOVI token is a governance token for the protocol and platform.
Holders of $GOVI share platform fees and will vote on matters such as the tradable assets, leverage used, deposit amounts, platform fees, and more.
The idea is that $GOVI will also be the governance token for further development and tools we will create for DeFi, whether it be new indexes or trading instruments.
It is important to keep in mind that $GOVI distribution is a fair launch distribution model: no pre-mine, no token sale, no fundraising.
Q: Why would traders use CVI instead of some other trading platform?
Tomer: Though I prefer to focus on our work for its own merits, the DeFi market is large enough for various platforms, we feel that ours is unique enough to be attractive for its primary usage of tracking and utilizing the CVI.
This is something that is not vastly available in other markets, and is considered pretty huge in financial markets.
Liquidity providers in other platforms can utilize the CVI to hedge against impermanent loss.
Our platform allows taking a position on volatility itself, that makes it a very nice hedge against impermanent loss.
Q: Do you have any exclusive news for us?
Oriane: As we all know, the Ethereum fees are very high and we developed solutions to address the Ethereum gas fees issue and it indeed decreased the fees.
But we are actually going to announce in the next couple of hours about a Layer 2 solution that we chose to address this issue with the Ethereum gas fees. So, stay tuned in the CVI Telegram group for this great news!
CVI Telegram group: https://t.me/cviofficial
Free-Ask from KuCoin Community
Q: What are the priorities now? What are we working on now? A lot of time has passed so far since the DeFi hype began. Has your team managed to develop the whole structure for CVI in this timeframe?
Oriane: As we just announced above, stay tuned as we are about to announce the Layer 2 solution that we chose.
Besides that, you are welcome to join the CVI channel to make sure not to miss anything: https://t.me/cvichannel
Costa: Top priority now is a CVI V2 release which will include Layer 2 solution, leverage trading and tokenization.
Q: How is GOVI beneficial for investors?
Tomer: You can use it to stake in the platform and get fees or simply use it as a long-term investment or use it once the governance options are enabled.
Q: What are your future plans?
Tomer: We plan on having the CVI in multiple chains {Layer 1 / 2} add support to multiple tokens and introduce additional features such as Margin, etc.
Q: What’s the timeline for launching the CVI volatility tokens and will these exclusively be available on the CVI platform or multiple exchanges from launch?
Yoni: Timeline - Q2, on launch - targeting one first DEX, then multiple ones. Once it's on one though it can be traded and moved to other DEXs.
Q: Purpose of GOVI?
Tomer: GOVI is meant to be a governance token to enable the owners of it to vote on issues related to the platform's development and configuration.
In addition, it can be staked and receive fees collected in the platform.
Q: Why name $GOVI?
Tomer: Governance and it sounded cool to us.
Q: $GOVI is running on the Ethereum network, which is not good because Ethereum has low transaction speed and high gas fees. Why did you decide to use the Ethereum network? Do you have any plans to launch GOVI mainet and let $GOVI run on your own network?
Oriane: https://t.me/Kucoin_Exchange/3826674
Q: What is the uniqueness of Crypto Volatility Index that cannot be found in other projects that’s been released so far? And how will the demand increase in the future or what steps would you take to increase the demand?
Yoni: We're the first mover and have been live on the Ethereum platform since January. V2 of CVI will bring about very cool features that we expect to become game changers in DeFi as a whole. These recent few weeks have shown how much DeFi needs a platform to trading volatility, as position holders in CVI took quite massive profits while the market had a downturn.
Q: At the moment, creating a token is a fairly straightforward process. The most difficult part, however, is developing the system and ecosystem. My question is: how will this token be used in the ecosystem?
Tomer: We have already introduced the tokens and now we are adding new functionalities.
The system is based on the functionality of the crypto fear index to counteract some scenarios of extreme volatility as were seen recently.
Q: Most users are still not aware of blockchain and its related projects. So, how does the CVI platform create awareness about their project with non-crypto users too?
Oriane: As Tomer said above, the DeFi space is large and is emerging. Like we saw with crypto in its early times.
CVI is built and conceptualized as user-friendly as possible to enable all user levels to use it.
Q: Community support is one of the biggest aspects of a project's success. Most projects have programs that interact with their users. Do you have a special plan to engage and expand the community and improve the user experience?
Oriane: Of course. We saw a great interest in CVI and we got so many mails from the community that we see how important it is to enlarge this aspect as well. We are working on it to improve it and give better support to all the CVI users.
Q: Which one of these aspects is important for you?
1-Increasing Token Price and Value
2-Empowering Platform Development
3-Building Community Trust
4-Expanding Partnership Globally
In what order?
Yoni: I have to say most of these are important but we have one aspect not mentioned which is above all - We are a team of builders and our focus is to build and continue improving the platform, as we see it's becoming a really useful tool for DeFi. I think that's what's most exciting for us above all - To build a product that is really useful.
Q: How was the idea to create the project $GOVI born?
Oriane: https://t.me/Kucoin_Exchange/3826641
Q: You organized a very useful AMA session and received lots of questions related to utilities and technology, visions of the future, so now I want to ask you what would you like to receive from the community?
Tomer: We are always interested in honest feedback and suggestions on things that are either missing and/or can be added or even simply better streamlined to reach higher performance.
In addition, we would like to make use of the community feedback to plan our roadmap ahead in such terms such as which additional tokens to introduce and what is most important to everyone.
Q: Ethereum gas costs are a major friction in the adoption of Defi platforms. How are you gonna manage this?
Costa: We are working on a Layer 2 solution that will go live soon. It will solve the gas issue we are currently experiencing on the Ethereum network.
Tomer: Well as you may have noticed in the last part, there was an announcement that we will be introducing the platform also in Layer 2, which should make a major dent in ongoing gas prices.
If you are following our project for a while you may have noted that we have added ongoing gas improvements all of the time.
Q: Why name GOVI? It’s so funny.
Tomer: Funny can be good, I would like to think of it more as a catchy name that is easily memorable.
Oriane: It does sound funny but it is actually GO for governance and VI for volatility index.
Q: Is it safe to invest, did your contract pass any audit before, and what are the security you have provided?
Costa: Yes we have both USDT and ETH platforms audited by CertiK and soon additional audit by another company will be completed.
Q: What is your vision about $GOVI in short, medium and long term and why?
Tomer: I would say that in the short term, mostly as an investment and as a means to collect {via staking} part of the ongoing fees.
Medium - in addition to the previous ones, as a tool to take part in the voting and governance of the platform to decide on its expansion and development.
Long term - expanding on the previous ones and also into additional platform by COTI.
Q: ETH gas is high so why are your pools on ETH? Why did you choose ETH than other pools for staking and liquidity mining to earn $GOVI? I have friends who are traders, if I had to give them the benefits of your platform in a thesis statement, what would I have to tell them?
Yoni: Ethereum is the heart of DeFi so it makes sense, ETH will always be a major asset in the platform in addition to many others. A major thesis I believe in for any trader and investor in DeFi (regardless of our platform) is to do your own due diligence.
In our regard - I suggest to look how much the VIX is popular in regular financial markets, how much is traded daily on its ETFs, futures, options. We're bringing the same concept to DeFi - with a cash flow generating governance token on top.
Q: Could you tell us a little about your greatest achievements last month? What are you working on right now? What are the main thoughts you want to convey through today's meeting?
Oriane: The Crypto Volatility Index is the first of its kind - which is an enormous achievement on its own.
The team is continuously improving it and adding the necessary features to make it the best tool for traders to hedge themselves against volatility. And we saw CVI is doing just that.
I think we can be really proud to have Professor Dan Galai joining the CVI board of advisors as it shows we are not just one of the projects out there but actually have something much more valuable.
Tomer: We are soon to introduce a version of the platform on Layer 2, which is very exciting and cutting edge.
Q: Is staking available?
Tomer: Yes.
Q: What are the highlights of your project and products that you believe will help you succeed? How revenue is generated to sustain the project, and what plans do you have to attract more users in the future?
Yoni: GOVI holders receive fees collected from platform usage, the platform has been generating cash flow from day 1.
Regarding plans - Besides V2 which is coming really soon, we have quite a few more surprises planned.
Q: In the crypto world, there are already a lot of coins that already exist, so how do you get CVI to reach a high value in the crypto market and are you sure that in the future it will be a coin that will enter the top 5 in the crypto market, and how long it can happen?
Tomer: The project is not just a token, rather the token is simply a means to the general functionality of the index.
Q: In the long run, why should we trust and follow you and your project? How do you raise awareness and elimination of doubts of investors/partners/customers? And what types of partnerships are you looking for and what value do they bring to the future?
Oriane: CVI was created by the COTI team. We have been in the sphere for 4 years now and our community has been following us for some time now. I think we've already proven that we build and deliver with our never stopping dev team, which is working full gas.
Plus, as mentioned above, we have one of the most important people from the DeFi space advising on CVI.
Regarding awareness, it is a long-term effort and we are working on it all the time. I can tell you that CVI has tremendous growth in its users in the past months (since its inception when only COTI holders knew about it). We're on the right track.
Q: Any NFT program?
Tomer: NFTs are definitely on our minds if it will make sense to incorporate them.
Q: Almost 80% of investors have just focused on the price of a token in the short term instead of understanding the real value of the project. Can you tell us the motivations and benefits for investors to hold your token in the long term?
Tomer: I understand that there is an important factor in attracting the attention of investors even if they are initially in short-term prices, but our hope is to reach at least some of them to look more deeply and appreciate the added value of the tool itself. Hopefully those people will share it with others and bring them as well.
Q: Security, liquidation and slashing risks are associated with DeFi protocols. What are CVI’s countermeasures to deal with such risks? What is the CVI risk to reward ratio compared to other DeFi protocol platforms?
Tomer: I think we have quite a unique model with diversified actions and checks and balances to each of them. We try to have ongoing reviews and audits and monitor the users on our platform for any irregularities.
Q: What is the GOVI governance token and how to get it?
Oriane: No, CVI is the platform name and GOVI is the governance token.
Q: What ne in the previous milestone of gov?
Tomer: I assume you meant the next, well its long-term purpose is to enable users to take part in some of the decisions regarding the platform itself.
Q: How does the CVI value affect my position? Can you explain it?
Oriane: Ask this in the CVI group, we will answer you there: https://t.me/cviofficial
Q: Can I trust this?
Tomer: It is always important to be skeptical and perform your own checks. COTI has been around the fintech arena for several years and has its community and good reputation with a long track record for you to examine and decide accordingly.
Q: How are you planning to promote your project in different countries, wherein English is not spoken well? Do you have local communities for them to better understand your project?
Oriane: Not yet, but we trust it will soon be needed with the rapidly growing usage of the CVI.
Q: In 2020, COVID-19 happened all over the world. Did it affect your project and development? Will your team have a new direction for 2021 while COVID-19 is still there?
Tomer: The year has definitely been challenging in many aspects, people had to work from home, but things are looking better now.
Q: Is there anything else you would like to share or you want us to know?
Oriane: Thank you all for this AMA session!
It was a pleasure and we remain available in the official CVI group if anyone has further questions, we can address it there: https://t.me/cviofficial
Tomer: Just wanted to thank everyone for all of your questions.
Giveaway Section
KuCoin and CVI have prepared a total of 500 GOVI to give away to AMA participants.
1. Red envelope giveaways: 188 GOVI
2. AMA activity: 300 GOVI
Activity 1 — Quiz: 200 GOVI
Activity 2 — Price Guess: 100 GOVI
3. Free-ask section: 12 GOVI
. . .
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