Cruize v2

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Implementation

Interfaces

Readjustment

Since the price floors are dynamic, the oracle checks the market price regularly and updates strike prices depending on any price updates to the underlying at the end of every epoch. Along with the strikes, the implied volatility is also updated during every epoch depending on the vault liquidity, exercise volumes and oracle data. To avoid price manipulation the protocol contains an implied volatility module in the oracle that can add boundaries to how far the new implied volatility can diverge, stemming from the logic that volatility cannot go to infinity or to zero as time evolves. The oracle factor is modular and can be used to decide how effective it will be in comparison to the calculated implied volatility. As the next epoch unfolds, the newly calculated implied volatility will be used in conjunction with the implied volatility oracle to calculate the next price with the entire process repeating.

Last modified 2mo ago

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