Volatility Income Pools (VIP) is live now

We are thrilled to announce that our next decentralized blockchain-based product — Volatility Income Pools (VIP) is live on Binance Smart Chain Mainnet now.

What is VIP?

• Volatility Income Pools is a system of vaults that allows investors to bet on realized volatility of crypto without trading options.
• VIP consists of two pools of capital, FLOW, and LEAP
• At the end of each hour, these pools exchange a fixed percent fee for absolute percent change in BTC over that hour

• The ratio between the amount of funds in the FLOW pool and the LEAP pool determines the expected move for the next hour

There are three account types:

1. FLOW — investors who expect absolute return over the next hour to be muted
2. LEAP — investors who bet on a large absolute move over the next hour
3. Market Maker — stakes the system by investing in both pools and receives part of the system fees

VIP Mechanics:

• The system has a fixed rate of 1% per hour that represents “equilibrium” volatility
• At the end of each hour, we calculate the absolute percentage change of BTC
• Using the fixed-rate and the absolute percentage change of BTC, we calculate the payments between the pools at the end of the hour:

FLOW_to_LEAP = abs(BTC_end / BTC_start — 1) * FLOW_start

LEAP_to_FLOW = 1% * LEAP_start

• The amounts of funds in the two pools are adjusted by the payments:

LEAP_end = LEAP_start + FLOW_to_LEAP — LEAP_to_FLOW

FLOW_end = LEAP_start + LEAP_to_FLOW — FLOW_to_LEAP

For example, imagine that at noon there are 1000 BUSD in the FLOW pool and 1100 BUSD in the LEAP pool. At the end of the hour, BTC USD moved by -0.75%, making R = 0.75%. The two pools now become:

FLOW = 1000 + 1100 * 1.0% — 1000 * 0.75% = 1003.5

LEAP = 1100 + 1000 * 0.75% — 1100 * 1.0% = 1096.5

As you can see, the FLOW pool made money because the absolute actual move (of 0.75%) was more than the expected move (1% * 1100/1000 = 1.1%).

Why invest in VIP?

• Invest in FLOW if you think crypto is going to just wobble around and the market will be boring
• Invest in LEAP pool if you expect large moves or need to hedge exposure (for example, impermanent loss on a DEX)
• Invest in the Market Maker pool to collect fees when the system is not staked sufficiently current

How to trade VIP?

• Connect your Metamask or another wallet to structure.finance
• Connect to BSC Mainnet
• Make sure that you have BUSD in your wallet
• Leave a request to invest into the pool that you like
• Enjoy 0% commission now!

What’s next for VIP?

• Do you want VIP on other cryptos like ETH or Doge?
• Do you want VIP with another frequency?
• Suggest ideas and learn more by joining our Telegram

Join VIP No loss offer!

All losses to Market Maker Pool traders will be compensated for the next 30 days (till November 5, 2021, 23.59 UTC) and will be reimbursed within 7 days of holding funds in this pool.