Jalapeño Finance
  • 🌶️Jalapeño Finance
  • Introduction
    • Disclaimer
    • Welcome to Jalapeño Finance
    • DeFi: Evolution of Finance
    • Jalapeño Finance Mission
  • Core Concepts
    • Introduction to Volatility Vaults and How They Work
    • Directional Volatility Vaults
      • Parlay Volatility Vaults
  • Features and Services
    • Volatility Vaults Explained
    • SOL<>ARB Support
      • aJALA
    • Directional Volatility Vault
      • Directional Volatility Vault Parlay
    • $JALA Token: Uses and Benefits
    • $JALA Leaderboard Rewards
  • Roadmap
    • 2024
  • Tokenomics
    • Tokenomics Overview
    • Deflationary $JALA Supply
  • Community Airdrop
    • Community Airdrop
      • Wave 1, 2, 3, etc.
      • Peño Points ($PEÑO)
  • User Guides
    • How to Participate in Volatility Vaults
    • Guide to LP Staking
  • Troubleshooting and Support
    • Common Issues and Solutions
    • Official Links
    • FAQ
    • Privacy Policy & Terms of Use
Powered by GitBook
On this page
  1. Features and Services

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 BonusDVPReward=(StakedAmount×VolatilityScore×DirectionAccuracyMultiplier)+DurationBonusDVPReward=(StakedAmount×VolatilityScore×DirectionAccuracyMultiplier)+DurationBonus

  • 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.

PreviousaJALANextDirectional Volatility Vault Parlay

Last updated 1 year ago