We're building a service that can provide a volatility rating for short-term (10 days), mid-term (50 days), and long-term (100 days) of various yield farming opportunities. The problems we're attempting to solve/use-cases are:
When running calculations for Aave, the service will take an input of the a specific token that is supported on the Aave platform and a volatility range, EX: (USDT, mid-term) and this will return our volatility score.
When running calculations for Uniswap, the service will take an input of the token pair that uniswap supports and a volatility range. EX: (USDT/ETH, long-term) and this will return our volatility score.
We could expand this idea to support other platforms as well, for example, Compound and/or Balancer.
This information would be available off-chain from our web-ui and possibly an API, as well as available on-chain through our oracle or our smart contracts.
Technologies we want to use:
Provided we have enough time we'd like to try and extend our platform to facilitate betting on volatility of various of our supported yield farming platforms (aave, uniswap) using Uma's LSP.
The idea is to mint a derivative that uses our oracle to track the volatility of each of our supported yield farms, thus creating a new tradable asset class akin to the VIX in fiat. We can even make use of UMA's LSP (Long Short Pair) capability to mint even further derived assets.
https://discord.com/channels/554623348622098432/798845148892889128/856599304994029568