Introducing Bitcoin-native volatility trading, inspired by TradFi’s “Fear Index”

Introducing Bitcoin-native volatility trading, inspired by TradFi’s “Fear Index”

VoltFI, an innovative DeFi protocol specializing in Bitcoin-based yield and volatility instruments, is partnering with Arch to bring programmatic volatility trading directly to the Bitcoin base layer.

The protocol’s vlxBTC token allows Bitcoin-native volatility trading modeled after how the VIX or "fear index" works in traditional finance. Just as the VIX lets traders speculate on or hedge against stock market volatility, vlxBTC creates an entirely new asset class on Bitcoin that allows traders to profit from or protect against Bitcoin's price movements.

This unlocks sophisticated trading strategies previously unavailable on Bitcoin's base layer, from simple volatility hedging to complex arbitrage opportunities.Traders will be able to execute delta-neutral strategies, conduct volatility arbitrage, or generate yield through volatility premium harvesting — all while maintaining complete custody of their Bitcoin without bridging or wrapping to other chains.

"Bitcoin's volatility has always been seen as a challenge, but we're turning it into an opportunity," says Guy Zaniratto, CEO of VoltFI. "Arch's architecture makes it possible to create sophisticated volatility products directly on Bitcoin, allowing users to hedge or capitalize on price movements without leaving the base layer."

Key innovations with VoltFi and Arch include:

  • Direct minting of vlxBTC through native Bitcoin UTXOs
  • Seamless integration with Bitcoin wallets for trading volatility products
  • Multi-signature validation ensuring secure contract execution
  • Transparent on-chain records for all operations
  • Support for Bitcoin-native assets without wrapping or bridging

This breakthrough represents a significant evolution from existing Bitcoin DeFi products.

"We are just another example of the types of complex DeFi instruments that Arch is helping unlock on the Bitcoin base layer," says Zaniratto, founder of VoltFI.

Users can start trading testnet BTC (tBTC) directly for vlxBTC on VoltFi.xyz, with more volatility and yield products planned for the future.

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About Arch Network 

Arch Network is a bridgeless execution platform designed to enhance Bitcoin's capabilities by enabling fast, secure, and fully verifiable smart contract-like programs. Its bridgeless architecture facilitates role-dependent trust assumptions, including fully trustless use cases on the Bitcoin base layer. With its specialized VM and Decentralized Verifier Network, Arch is helping unlock the full liquidity and programmability of Bitcoin.

About VoltFI 

VoltFI is pioneering Bitcoin-native volatility trading and yield generation. Through products like vlxBTC, VoltFI enables users to hedge against or profit from Bitcoin price movements while maintaining complete custody of their assets on the base layer.

Learn more about VoltFI: 

Website: voltfi.xyz 

X: @VoltFiLabs