Directional Volatility Vault

Directional Volatility Vaults (DVPs) at Jalapeño Finance offer a unique, engaging way for users to interact with and benefit from market volatility, with the potential for higher rewards compared to regular Volatility Vaults. These pods allow users to predict the direction of market volatility and earn rewards based on the accuracy of their predictions.

Sample Reward Formula for Directional Volatility Vaults: DVPReward=(StakedAmount×VolatilityScore×DirectionAccuracyMultiplier)+DurationBonusDVPReward=(StakedAmount×VolatilityScore×DirectionAccuracyMultiplier)+DurationBonusDVP Reward=(Staked Amount×Volatility Score×Direction Accuracy Multiplier)+Duration BonusDVP Reward=(Staked Amount×Volatility Score×Direction Accuracy Multiplier)+Duration Bonus

  • Staked Amount: The quantity of $JALA tokens you invest in a Directional Volatility Vault.

  • Volatility Score: A measurement derived from the asset’s price fluctuations over a specific timeframe.

  • Direction Accuracy Multiplier: A higher multiplier applied when the user correctly predicts the direction of the market’s volatility (up or down). This multiplier is what sets DVVs apart, offering a larger reward for accurate predictions.

  • Duration Bonus: An additional reward for users who stake their tokens for longer periods, promoting long-term participation.

In this model, DVVs not only reward users based on the usual factors of amount staked and market volatility but also significantly increase rewards for correctly predicting the volatility trend. This structure makes DVVs particularly attractive for users who have a strong understanding of market dynamics and want to leverage this knowledge for potentially higher returns.

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