March 17, 2022, 9:14AM EDT
• 19 min read

Fear and Greed: Cryptocurrency Volatility Indices

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?

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