Until now, the standard volatility of polar tokens on the Polars platform has been 5%. This means that after the end of each event, the price of the winning and losing tokens changes by about 5% * Coef.
Long-term observations show that the user spends 0.3% to buy a token and 0.3% to sell a token. In addition, about 0.1% goes to Gas to complete the transaction. If the user makes an exchange in the Trade Pool, taking into account the commission for the transaction, Gas and slippage, he can spend about 0.5% more. Ultimately, the profit from one event can be less than 4%.
We will experiment with a gradual increase in the level of volatility in order to increase the earning opportunities for our users. Let’s start with increase to 6% in underlying volatility.
In the event of a winning streak for one of the teams, the price gap between polar tokens will increase / decrease faster. That is why we will run the experiment smoothly.
The new DeFi platform for creating secure polar tokens, the price of which depends on the results of specific external events. Within the POLARS platform, users can buy, sell and exchange polar tokens, as well as participate in the distribution of the platform’s commission income.