Benchmark Protocol

Benchmark Protocol


Key Metrics

Real Volume (24H)$0
Fully Diluted Valuation$567,594
ATH Date2/3/2021, 12:18:48 AM
ATL Date12/29/2020, 11:40:05 PM
Circulating Supply430K
Total Supply455K
Popularity Rank2794
What is Benchmark Protocol?

Benchmark Protocol is a unique and innovative DeFi platform that provides a supply elastic collateral and hedging solution, driven by the volatility index. The protocol operates based on a set of rules that dynamically adjust supply according to the CBOE volatility index (VIX) and deviations from the target metric, which is equivalent to 1 Special Drawing Rights (SDR) unit. The use of SDR creates a larger use case and exposure to different currencies, making it attractive to users worldwide.

The traditional approach to collateral and hedging in DeFi platforms is often static, leading to reduced liquidity during periods of high volatility. Benchmark Protocol addresses this issue by dynamically adjusting its supply based on the VIX, which allows it to remain effective and maintain its inherent liquidity.

The Benchmark Protocol's unique approach to collateral and hedging offers several benefits to users. Firstly, it provides a larger user base, given its exposure to different currencies, which enables users worldwide to participate in the platform. Secondly, it provides an efficient solution to reduce the impact of high volatility on the platform's efficacy, thereby maintaining its baseline liquidity.

The use of the VIX as a dynamic adjustment factor in Benchmark Protocol's supply elastic collateral and hedging solution is a game-changer. It allows for increased market stability and enhanced liquidity by reacting to fluctuations in the VIX. This ensures that users are not negatively impacted by high volatility periods and can continue to use the platform seamlessly.

In summary, Benchmark Protocol is a unique DeFi platform that offers a supply elastic collateral and hedging solution that is driven by the volatility index. The use of SDR provides a larger use case, and the protocol's dynamic adjustment of supply based on the VIX ensures that it remains effective and maintains baseline liquidity during periods of high volatility. This innovative approach is poised to revolutionize the DeFi space and offer users a better and more stable investment option.


The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.

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