Basic Information
Volmex Labs is submitting this proposal to integrate our industry-leading volatility indices — BVIV and EVIV — with Hydration, an up-and-coming Polkadot-native decentralized perpetual futures exchange, poised for rapid expansion. Please review this past episode of AAG with Jakub from Hydration discussing the value Volmex’s products would bring the ecosystem, as well as some compelling ideas around how BVIV could be used to diversify and strengthen the Polkadot treasury. You can also view the previous proposal here. Community feedback from the first proposal was very helpful and has been addressed and incorporated in this resubmission.
Thank you all for your support of this valuable piece of Polkadot’s burgeoning DeFi ecosystem!
Volmex recently secured BVIV and EVIV perpetual market integration licensing deals with five of the top fifteen DEXs by volume in DeFi, and we are in the process of integrating BVIV and EVIV indices as tradable products on North America’s largest and most trusted centralized exchange, in addition to a number of major, reputable CEXs. The BVIV and EVIV indices have been live with 99.999% uptime for three years, with fully built-out and optimized best-in-class methodologies.
To power this new Polkadot integration in partnership with Transistor, we are requesting $425,000 USDC to fund a comprehensive three-year initiative covering the initial integration, ongoing maintenance, the integration of our recently launched Prime Rate Indices, legal compliance, and robust go-to-market campaigns. This integration addresses skyrocketing demand for simple, straightforward, powerful risk management and speculation solutions. By introducing Volmex indices to Polkadot, we aim to enhance Polkadot’s overall DeFi capabilities and catalyze a DeFi renaissance in Polkadot’s ecosystem.
Executive Summary
Volmex stands as the first and foremost creator of crypto volatility benchmarks, namely the Bitcoin Volmex Implied Volatility (BVIV) and Ethereum Volmex Implied Volatility (EVIV) Indices. Volmex’s indices provide retail and institutional participants alike with clear, easily tradable products, like BVIV and EVIV perpetuals, that distill bitcoin and ether volatility into a simple long/short framework, abstracting away the complexity that is typically associated with trading crypto derivatives. BTC and ETH are the largest and most widely held assets in crypto by a large margin, and Volmex's BVIV and EVIV perpetuals serve as clean, simple hedging and speculation instruments for BTC and ETH holders, thereby bringing unique value to the Polkadot ecosystem and magnifying Polkadot’s DeFi presence.
Project Scope
In collaboration with Hydration and Transistor, we will first focus on integrating Volmex’s bitcoin and ethereum volatility indices (BVIV, EVIV) into Polkadot, aiming to create smooth perpetual markets for these products. Over time, we also plan to introduce Volmex’s Prime Rate Indices (e.g., BVPR, BLDR, etc.) once the foundation is established. The scope of this proposal includes:
Smart Contract Development and Integration
Platform-Specific Adaptations
Advanced Liquidity Management
Security and Audit Process
By rolling out BVIV and EVIV first and later adding Prime Rate Indices, Polkadot traders will enjoy top-tier volatility hedging products while anticipating further rate-oriented tools in the future.
Budget Allocation and Justification
Our $425,000 USDC budget covers the entire three-year lifecycle of this project, encompassing both initial integration and the subsequent operational phases:
Initial Integration | $225,000
Maintenance & Technical Support | $100,000
Legal & Compliance | $50,000
Go-to-Market Operations | $50,000
This budget distribution is structured to ensure a robust and secure launch, followed by thorough support and sustained growth throughout the Polkadot DeFi ecosystem.
Implementation Timeline and Methodology
Our plan spans nine months for the initial rollout, with the remainder of the three years dedicated to continuous upgrades and expansions:
Months 0–3: Foundation & Infrastructure
Months 3–6: Parallel Integration
Months 6–9: Public Launch & Optimization
Year 1–Year 3: Maintenance & Feature Expansion
Team Expertise and Implementation Strategy
Volmex Labs
Transistor
Both teams will coordinate closely to ensure an effective rollout, prioritizing user experience, security, and reliability.
Performance Metrics and Success Criteria
Technical Metrics
Adoption Metrics
Risk Management Framework
We employ a layered risk management approach:
Technical Safeguards
Market Distribution
Regulatory Compliance
Reporting and Transparency Mechanisms
Prioritizing openness and accountability:
Scheduled Progress Updates
Incident and Resolution Protocols
Financial Transparency
Future Development Roadmap
Following the successful launch of BVIV and EVIV perpetuals, we intend to build further:
Prime Rate Indices Rollout
Factor ETF Indices
Ongoing Volatility Index Methodology Enhancements
Contact and Support Infrastructure
For inquiries, feedback, or support:
We remain committed to keeping lines of communication open and directly engaging with Polkadot stakeholders and end-users alike.
Supporting Documentation
Official Volmex Pages
Key Volmex Volatility Indices on TradingView
Prime Rate Indices
Announcements on X
Partnerships
Developer Resources
Volmex Labs has proposed integrating their leading volatility indices, BVIV and EVIV, with Hydration, a Polkadot-native decentralized perpetual futures exchange. This integration aims to enhance Polkadot's DeFi capabilities and strengthen its ecosystem. The project involves smart contract development, platform-specific adaptations, advanced liquidity management, and security audits. The budget for this three-year initiative is $425,000 USDC, covering initial integration, maintenance, legal compliance, and market campaigns. The timeline spans nine months for the initial rollout and three years for continuous upgrades and expansions. The team's expertise includes top-tier talent from traditional finance, crypto quant groups, and software powerhouses. Performance metrics and success criteria include technical metrics, adoption metrics, and a risk management framework. Future developments include the rollout of Prime Rate Indices, Factor ETF Indices, and ongoing Volmex indices methodology enhancements.
Threshold
Hello,
Thx for this detailed proposal.
Could you indicate Transistor’s commission amount if there is any please?
It’s part of the expected transparency.
Could you explain the 50k $USD increase, what justified is compared to the previous proposal.
Thx in advance.