Volmex Finance Brings VIX-Style Volatility Trading to Hyperliquid

Volmex Finance has introduced a new product on Hyperliquid, allowing traders to bet on Bitcoin's expected volatility as a standalone asset. The product is a perpetual futures contract based on the company's Bitcoin Volmex Implied Volatility Index (BVIV), which tracks the 30-day expected implied volatility of Bitcoin.

The BVIV index is calculated by pulling real-time options data from Deribit and OKX, two of the largest crypto options venues. Recent readings have been in the mid-to-high 30s, indicating a high level of anxiety about near-term price swings.

The perpetual futures contract uses a linear payout model, meaning that for every 1.00 point the index moves, traders gain or lose $1 USDC. This is similar to how the VIX works on Wall Street, but with up to 5x leverage and without the need for institutional brokerage accounts.

The product comes with a few caveats, including the risk of gap behavior, where the index jumps sharply between calculation intervals. However, Hyperliquid's isolated margin structure helps contain this risk by separating it from other holdings on the platform.