Volumetric DeFi Exposure | VDE

The VDE token shows a 4D map of the second derivative of DeFi volume change. The convergence of volatility can also be seen by the denser section of small asset pricing spikes along a theoretical line zero. The larger spikes reflect drastic changes in volume.

VDE - Volumetric DeFi Exposure - Tracks the aggregate second derivative of changes in volume across large cap tokens. This convergence of volume grids allows for clearer trends to be established while also minimizing some of the volatility in the asset itself - while also becoming independent from any intrinsic value changes.

Unlike the underlying market, directional bias has no correlation towards positive or negative value shifts. Instead, positive changes in volume moves correlate to asset appreciation whereas negative changes in volume moves result in asset depreciation. VDE helps clarify market trends without relying on asset pricing - therefore it can appreciate in times of market collapse or depreciate in times of market growth or vice versa.

Mints start at 10 USD worth of ISA. The longer a positive volume move is sustained, the more sensitive VDE becomes towards positive moves. The shorter a positive volume move is sustained - or if a negative volume move is made - the slower the asset appreciates or tends towards depreciation. Over time - the range will rise or fall based on sustained volume changes, however, the bias representation of ratios will remain consistent and seek to converge towards lower volatility trends.

Like all collateralized products on our platform, sRho is used to secure the short position. VDE utilizes a 2:1 collateral ratio to secure the position. A 2.5% mint fee is required to mint VDE - with the minter receiving sVDE in return as a receipt.

A 2.5% fee applies to swapping sVDE. sVDE can be bonded and sold to the Treasury. Short-sellers will also pay interest to the pooled long sVDE at a daily interest rate of 0.2% per day - which will be paid for in sRHO. This daily interest will be calculated at the time of establishing the short by entering the maximum number of days you will be short for. Once the time limit is up - the short contract will expire and the short closed. If VDE is below the price when the short was initiated, the aggregated long pool of VDE will pay the unit count worth of profit to the now closed short holder. The time interest the short paid to the collected pool of longs will then be distributed to the longs proportional to their positional unit count.

However, the interest will only be paid to the long holders that were in the pool at the time the short was established. If a short-seller chooses to close out their position at a loss, the collateral lost will be divided among all long sVDE unit holders that were in the pool at the time the short was established. If the short-seller closes out their position at a profit, the percentage of the profit will be divided amongst all long sVDE and the appropriate sVDE units will be transferred to the short-seller as profit.

Shorting above the total float of VDE in the lending pool is prohibited.

VDE performance VS straight BTC close prices and volume data. Various measures have been taken to limit aggravated volatility spikes. Click below to enlarge.