Volatility Oracle
Markets with Off-chain data source
To provide reliable and market-driven implied volatility for traders on IVX, the protocol will depend on a built-in volatility oracles, associated with Laevitas.ch as the main data provider. This will push off-chain volatility indexes determined between multiple high liquid centralized option exchanges, to on-chain data pipelines in order price IVX option markets.
CEX option exchanges supported
Deribit
Binance
Bybit
OKX
CoinCall
As the strike prices on IVX are compatible with the option exchanges, the volatility oracle will fetch the and and calculate the weighted average between the supported exchanges ensuring the following criteria:
Deactivate any volatility feed which there have been no data updates for the last 1 minute
Eliminate any volatility feed where the and is 10%+ away from the median volatility across all volatility feeds.
Terminate any options market with less than two valid volatility sources for the last 5 minutes
By that the index volatility for each side will be calculated as follows:
The price feed will be updated on chain every 15 minutes or every specific increase in IV percentage, this will be dependent on the activity of the token-supported
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