Crypto derivatives protocol Volmex Finance has unveiled a new implied volatility index for programmable blockchain Solana's SOL token. The SVIV index measures the forward-looking 14-day expected volatility in SOL, allowing traders to track the degree of potential price swings in either direction over the following two weeks.

Volmex said it would eventually debut longer-duration SOL implied volatility indices, including the widely-tracked 30-day gauge and derivatives linked to the same, enabling market participants to place bets on volatility. "Vol trading" involves profiting from the degree of price fluctuations rather than the price direction, using tools like options tied to the underlying asset and futures tied to volatility indices.

Volmex's bitcoin implied volatility index (BVIV) and the ether index (EVIV) have been trading on Bitfinex since early April, and have been adopted by institutions. Earlier this year, principal trading firm Arbelos Ltd and B2C2, an institutional liquidity provider for digital assets, completed the first bilateral option transaction on the BVIV index.

Source: https://www.coindesk.com/markets/2024/09/04/solanas-sol-gets-first-implied-volatility-index-on-volmex/

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