vixdex
Re-Innovating options with on-chain IV
Vixdex is dex that helps to trade implied volatility for any token listed on uniswap
Built on Uniswap V4
VixDex - Implied Volatility Trading Protocol - Simpler Than Options
VixDex lets you trade volatility directly, without the complexities of strike prices, expiries, or options greeks. Built on Uniswap V4, it introduces High-IV and Low-IV tokens that reflect the market's real-time implied volatility for any ERC-20 asset. Instead of betting on price direction, VixDex lets you speculate on how volatile the market will be, using a fully on-chain, It’s everything options try to do but simpler, more transparent, and fully decentralized.
What is VixDex?
VixDex is a decentralized protocol that allows users to trade implied volatility of any ERC-20 token directly on-chain, without using traditional options contracts. Instead of buying or selling options, users on VixDex can trade two tokens:
High-IV Token – Gains value when a token’s volatility increases.
Low-IV Token – Gains value when volatility decreases.
Built on Uniswap V4’s Hook architecture, VixDex introduces a novel way to speculate or hedge on market uncertainty using a custom bonding curve — all without relying on centralized oracles or option greeks.
Use cases
Discover the various ways VixDex can revolutionize your trading strategy
Alternative to Options
Trade implied volatility directly, without the complexity of strike prices, expiries, or margin. A simpler, no-jargon, beginner-friendly on-chain alternative to traditional options.
Speculation on Market Movement
Bet on whether implied volatility will rise or fall—without predicting price direction. Perfect for traders seeking directional-neutral strategies.
Hedge Against Volatility
Protect your portfolio during uncertain market conditions by holding High-IV or Low-IV tokens based on volatility outlook.
No Limitations
No off-chain dependencies, and no KYC. Permissionless access to volatility markets for any ERC-20 token listed on Uniswap.
No Liquidity Fragmentation
VixDex uses Uniswap V4 pools—no need for separate markets for each expiry or strike. All liquidity is unified, making markets deeper and more efficient with the help of our own bonding curve or pricing curve.
Market Volatility Indicator
Token prices on VixDex reflect real-time implied volatility, turning the protocol into a living indicator of market sentiment.
RoadMap
Our development timeline and future milestones
Phase 1: Completed
Proof of Concept & Initial Development
Goal: Build and finalize the core proof of concept for VixDex, demonstrating volatility trading on-chain. Actions: - Complete the first version of VixDex with basic volatility trading functionality. - Integrate Uniswap V4 for liquidity management. - Build foundational smart contracts (Vix.sol, VolatilityERC20.sol). - Ensure the basic mechanics for trading implied volatility and minting tokens are working.
Phase 2: End of May 2025
Optimization & Dynamic Mechanisms
Goal: Improve on-chain performance and introduce dynamic pricing and reserve mechanisms. Actions: - Implement Huff programming for optimizing the bonding curve calculation. - Use Yul for efficient math operations like addition, subtraction, etc. - Introduce Solidity math libraries and bitwise operations to optimize transaction costs. - Implement a dynamic bonding curve to allow for flexible pricing based on real-time market conditions. - Upgrade the reserve swap mechanism to react dynamically to market volatility (IV). - Introduce dynamic reserve shift to enhance liquidity management.
Phase 3: End of May 2025
Frontend Development & IV Oracle Integration
Goal: Build a user-friendly interface and integrate a decentralized implied volatility oracle. Actions: - Develop a user-centric frontend with features like notifications and chats (similar to pump.fun). - Integrate IV Oracle using ICP for decentralized implied volatility data. - Expand token support (including USDC, USDT, and ETH) for greater compatibility. - Implement a universal volume tracking system for all pairs.
Phase 4: Early to Mid June 2025
Grant Application, Collaborations & Launch
Goal: Submit VixDex for Unichain Developer Grant and explore potential partnerships or collaborations. Actions: - Apply for the Unichain Developer Grant to gain support and funding. - Explore collaborations with other DeFi protocols and platforms, tokens, developers to expand VixDex's reach and usability. - Prepare documentation, technical write-ups, and necessary materials for grant submission.
Award-Winning Innovation
We're proud to announce that VixDex won a uniswap prize from the Uniswap Hook Incubator, known as Atrium Academy. This recognition affirms our mission: to democratize volatility trading and bring the next wave of derivatives to DeFi users worldwide.
Built for the Uniswap Ecosystem
VixDex seamlessly integrates with the Uniswap V4 infrastructure while offering a custom pricing mechanism that sets it apart. While we leverage the robust foundation of Uniswap's liquidity pools, VixDex introduces its own volatility-driven bonding curve to determine token prices. This enables:
- No Liquidity Fragmentation: VixDex maintains a unified experience, eliminating any liquidity fragmentation by using its custom pricing logic for all trades.
- Independent Pricing: Unlike traditional AMMs, prices are driven by volatility and token supply, ensuring more accurate reflections of market sentiment.
- Composability with Uniswap V4: Built using Uniswap V4’s No-Op Hooks, VixDex ensures compatibility and smooth interaction with the wider Uniswap ecosystem, offering liquidity providers and traders an innovative yet familiar experience.
FAQ
Frequently asked questions about VixDex
VixDex is the ideal alternative to options trading. In traditional options, the price of the premium is determined by implied volatility (IV), right? Similarly, in VixDex, the prices of High IV Tokens and Low IV Tokens are also determined by real-time implied volatility (IV). This means users can directly trade on volatility, just like trading options premiums, but without the complexity of strike prices, expiry dates, and other options-related intricacies. VixDex simplifies volatility trading, making it accessible and straightforward.