
AD Derivs. Podcast (Ep. 26) - Cole Kennelly @Volmex
AD Derivs: Insights from Crypto Option Traders
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Volatility Indexes - Is There a Maximum Value?
The AMM is a liquidity provider for volatility tokens. Is there sort of like an effective maximum value that the index can take? So therefore, liquidity providers are essentially fully funded? Or how do you think about that? Yeah. It's an excellent question. The way that we think about this is that volatility, you know, there's any sort of synthetic asset on Ethereum or any sort of,. you know, generally like there needs to be collateral there. And so in the case of the volatility tokens, there's 400 units of USDC or DIE.
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