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
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  1. Features and Services

Volatility Vaults Explained

Volatility Vaults by Jalapeño Finance are innovative DeFi instruments allowing users to capitalize on cryptocurrency market volatility. Unlike typical investments focusing on price, these Vaults reward users based on an asset’s volatility. Here's how they work:

Sample Formula for Rewards: VaultReward=(StakedAmount×VolatilityIndex)+DurationBonusVaultReward=(StakedAmount×VolatilityIndex)+DurationBonusVault Reward=(Staked Amount×Volatility Index)+Duration BonusVault Reward=(Staked Amount×Volatility Index)+Duration BonusVaultReward=(StakedAmount×VolatilityIndex)+DurationBonusVaultReward=(StakedAmount×VolatilityIndex)+DurationBonus

  • Staked Amount: The amount of $JALA tokens you invest in a Vault.

  • Volatility Index: A metric calculated from the asset’s price fluctuations over time.

  • Duration Bonus: Extra rewards for longer staking periods.

With this mechanism, Volatility Vaults offer a unique way to engage with the DeFi space, providing rewards not just for asset appreciation, but for understanding and predicting market behavior.

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Last updated 1 year ago