Mhairi
March 2, 2022, 1:51pm
1
ethVIX is a real-time index representing the expected volatility for ETH over the coming 14 days. iethVIX is the inverse of the ethVIX. When ethVIX moves up, iethVIX moves down by an equivalent percentage, and vice versa.
# Headers
| UMIP-74 | |
|---------|-|
| UMIP Title | Add ethVIX & iethVIX as price identifiers |
| Authors | dVIX Developers |
| Status | Approved |
| Created | 03.31.2021 |
| Discourse | [Link](https://discourse.uma.xyz/t/add-ethvix-and-iethvix-price-identifiers/680) |
# Summary
ethVIX is a real-time index representing the expected volatility for ETH over the coming 14 days. iethVIX is the inverse of the ethVIX. When ethVIX moves up, iethVIX moves down by an equivalent percentage, and vice versa.
# Motivation
ethVIX and iethVIX allow for the trading of model-free expected volatility of ETH. ethVIX is best understood as a long volatility position while iethVIX is a short volatility position. The ethVIX index is very similar to the Cboe VIX which tracks the expected volatility of the S&P 500. By trading ethVIX or iethVIX traders can take long or short positions against volatility, either as a speculative trade itself or a hedge for other speculative trades.
Here are some examples of how traders might use ethVIX and iethVIX:
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