(╯°□°)╯︵ ┻━┻ Protect yourself from BTC dump with Bitcoin Volatility Token

[DenisGorbachev]

WEBSITE | TELEGRAM | TWITTER | ETHERSCAN | GITHUB

Bought Bitcoin? Welcome to the club: you've just exposed yourself to the biggest opportunity of your lifetime. But that opportunity has a cost: Bitcoin is volatile, and you can lose your sleep watching every move.

To protect yourself from price risk, you need an asset that does not dump together with Bitcoin.

— But, everything is correlated! Every crypto dumps when Bitcoin takes a dive!
— Well, BTCV doesn’t. Take a look at the chart: https://btcv.volatility-tokens.com/

Price relationship with BTC

BTCV stands for “Bitcoin Volatility Token”. BTCV mark price depends on the volatility of BTC:

• When BTC pumps, BTCV pumps.
• When BTC dumps... BTCV also pumps.

That’s because all BTC moves — both pumps and dumps — increase the volatility, which increases the mark price of BTCV.

Where’s the catch? Here you go: BTCV mark price decreases while BTC price stabilizes. When Bitcoin becomes boring, its volatility goes down, and so does Bitcoin Volatility Token... which makes it a good time to buy

→ Subscribe here to get notified when Bitcoin Volatility Token goes under $0.03 (safe for long-term investment) ←

So, how exactly does BTCV price depend on volatility? Simply put, volatility triggers a change in “mark price”, which in turn triggers liquidations of margin short positions. That means you can sell into liquidations, which are forced buy orders placed at mark price.

In other words: if volatility increases above certain mark, the exchange will place an automatic buy order which can’t be cancelled. This buy order will come from the trader who borrowed BTCV and sold it at market (“shorted BTCV”), thinking that volatility would decrease. His mistake becomes your opportunity. When exchange places an automatic buy order (“short liquidation”), you can sell your tokens into that order.

More information:

• Trading strategies for BTCV
• Mark price mechanics

Real world example

BTCV is modelled after VIX futures listed on CBOE: they allow traders to bet on volatility of S&P 500 index. Here’s the chart of VIX futures volume:
https://i.imgur.com/m1zbBuA.png

We’ll make our best to ensure that BTCV volume follows the same trajectory.

Features

• Exchange listing (Voltex)
• Price support bot (see below)
• Zero initial supply
• Constant emission

Specification

• Type: ERC-20 token with limited supply & low emission.
• Max supply: 100000000 BTCV.
• Circulating supply: 9117300 BTCV (~9% of max supply - better than regular ICO with 100% of max supply).
• Emission: 100 BTCV per ETH block (see “Supply & Emission” section for explanation).
• Price: depends on Bitcoin volatility (chart: https://btcv.volatility-tokens.com/).

Roadmap

Since BTCV innovation is financial, not technical, our codebase is simple - in fact, we’ve already implemented all core functionality.

Our primary goal is to list the token on exchanges — as many as possible.

• [Done] Deploy smart contract.
• [Done] Implement price calculation algorithm.
• [Done] List on a decentralized exchange.
• Implement sales bot.
• Implement price support bot.
• List on a centralized exchange with margin trading (e.g. Bitfinex, Huobi).
• (Continue until we have funds) List on other exchanges: both centralized and decentralized.

We shall invest all the money that we receive from BTCV sales into listing the token on exchanges.

Team

Denis Gorbachev - marketing & development (LinkedIn, GitHub).

Denis is a coder at heart: he started programming at the age of 14, had fun with C++ & WASM, then shifted towards higher-level languages like Elixir, Python & JavaScript / CoffeeScript. He recently decided to apply his coding skills at designing new financial products, starting with VOLTs (volatility tokens).

Alexander Kuzmenko - development (LinkedIn, GitHub).

Alex is the person behind the smart contracts & mark price feeds for VOLTs. He enjoys implementing backend services in Elixir and frontend widgets in JavaScript. He used to work for a bank, but ditched the regular job for crypto life.

Distribution

Bitcoin Volatility Token is distributed through Voltex (our decentralized exchange built upon 0x framework). We place our sell orders at the current mark price and move them daily. After we implement the sales bot, we’ll move our orders each hour (according to mark price recalculation period).

We’ll spread the supply over other exchanges when they list our token. It’s in echanges’ best interest to list BTCV soon, because the more BTCV is sold on their market, the more price support orders our bot will place (see below).

Price support bot

BTCV price is supported with buy orders that are placed at -50% from our sell orders. Here’s an example:

• Bot calculates mark price (e.g. $0.06).
• Bot places a sell order for 100 BTCV at $0.06.
• Alice buys 100 BTCV at $0.06.
• Bot places a buy order for 100 BTCV at $0.03.

Supply & Emission

Bitcoin Volatility Token implements constant low emission of 100 BTCV per 1 ETH block, starting with zero initial supply. This ensures that developer won’t dump the premine when the token is listed on exchanges.

We’re playing a long-term game here.

[--($)--] Get notified when BTCV price goes under $0.03: subscribe to Telegram channel [--($)--]

Links

• Twitter
• Telegram group
• Telegram news channel
• Telegram price updates
• Discord server
• Website
• Github
• Trading strategies

[1714113066]

1714113066

[DenisGorbachev]

Reserved.

[Sergei.Gerasimenko]

Protect yourself from volatility with Volatility Token?  So, is it a stable coin or not? If yes, it has very bad name, if no, how it can protect from volatility?

[Sergei.Gerasimenko]

BTCV stands for “Bitcoin Volatility Token”. BTCV mark price depends on the volatility of BTC:
When BTC pumps, BTCV pumps.
When BTC dumps... BTCV also pumps.
That’s because all BTC moves — both pumps and dumps — increase the volatility, which increases the mark price of BTCV.

What? How exactly are you planning to do that with the price of your token? What mechanism will you use for that? Because as for me, I don't understand what you are talking about. You will do that manually?

[DenisGorbachev]

Protect yourself from volatility with Volatility Token?  So, is it a stable coin or not? If yes, it has very bad name, if no, how it can protect from volatility?

1. It's not a stablecoin: BTCV mark price equals $0.01 * 24H Bitcoin volatility.
2. BTCV mark price goes up when Bitcoin goes down - so you can protect against volatility by buying BTCV when Bitcoin is stable and selling BTCV when Bitcoin becomes volatile (e.g. dumps).

It's worth noting that "mark price" is not "last trade price". For more information about trading strategies, please check out "How to make money on BTCV token?"

[DenisGorbachev]

What? How exactly are you planning to do that with the price of your token? What mechanism will you use for that? Because as for me, I don't understand what you are talking about. You will do that manually?

Via liquidations - kinda like BitMEX does it with XBTUSD, by liquidating traders according to mark price.

Suppose mark price goes up, but actual market price doesn't move. In this case, short positions will be liquidated anyway, and the forced buy orders will be placed at mark price, thus influencing the actual market price.

Think of "mark price" as a data feed that we provide to exchanges. It's true that we need to list the token on exchanges that support margin trading (e.g. Bitfinex, Huobi, or some of the new ones). That's why listing the token is our highest priority, as we've mentioned in the ANN post.

FYI, BTCV is already listed on Voltex, although it doesn't support margin trading yet.