Watt Protocol
  • 👋Welcome
  • Manifesto
  • Contribution
  • 💥Protocol overview
    • Liquid staking for tokens
    • Volatility farming
      • Arbitrage opportunities
      • Volatility farming flywheel
    • Watt assets
      • Token ratio
      • Watt token specification
    • Liquidity pools
    • User actions
    • Fee structure
      • Burn rate
    • Amplifiers
    • Guides
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  • What is a volatility farming?
  • Why is volatility farming important for users?
  1. Protocol overview

Volatility farming

Imagine a world where the ups and downs of cryptocurrency prices aren't just a rollercoaster ride for investors, but actually a way to earn rewards. This is the essence of volatility farming.

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Last updated 2 months ago

What is a volatility farming?

At its core, volatility farming is a way to make your Solana liquid-staked tokens work for you by taking advantage of the natural price swings in the market. In traditional finance, volatility is often seen as something to be wary of. But we turned this volatility into an opportunity - users earn rewards regardless of whether prices are going up or down. It's not about predicting the market; it's about being part of the action.

Why is volatility farming important for users?

  • Sustainable source of yield: Volatility farming provides a new way to earn yields that is not dependent on traditional methods like dilutive staking or lending, helping users in the ecosystem diversify their DeFi strategies.

  • Market-neutral strategy: Unlike traditional directional speculations where users profit only when prices go up, or short-selling when prices go down, volatility farming can provide returns regardless of market direction.

  • Flexibility: Users can enter or exit their positions at any time without long lock-up periods, offering greater liquidity and control over their assets.

The backbone of the protocol comprises of Watt assets, liquidity pools and fee distribution.

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