Fear and Greed: Cryptocurrency Volatility Indices

March 17, 2022, 9:14AM EDT

• 19 min read

Quick Take

Volatility indices and derivatives such as Cboe’s VIX form a crucial part of developed financial markets. Cryptocurrencies are still waiting for an equivalent asset class to gain mainstream adoption.
Reviewing cryptocurrency volatility index’s methodology, including the standard VIX model-free approach.
Both centralized and decentralized solutions exist, including Deribit’s DVOL, T3 Index OTC volatility derivatives, as well as DeFi protocols CVI, Volmex, and Volatility Protocol.
Are decentralized volatility protocols futile when Deribit holds a near-monopoly on cryptocurrency options?

Join The Block Research for exclusive research like this

Gain access to this research piece and 100s of others, including ecosystem maps, company profiles, and topics spanning DeFi, CBDCs, banking and markets. Together with additional services, we help organizations understand what’s happening in the rapidly developing digital asset ecosystem.

Already a Research Member? Login Here

Source: https://www.theblockresearch.com/fear-and-greed-cryptocurrency-volatility-indices-136377?utm_source=rss&utm_medium=rss