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CVI Launched Impermanent Loss Protection System


thenewscrypto.com 20 July 2022 13:59, UTC
Reading time: ~2 m

  • CVI launched the alpha version of Armadillo.
  • Armadillo is impermanent loss protection.

Crypto Volatility Index (CVI)  launched the alpha version of Armadillo, which now included further features and flexible pricing options. With the help of the CVI, customers can protect themselves against market volatility and impermanent loss.

Also, it will help to acquire a specific coverage matching their applicable pair and quantity and indicate the duration of coverage like 14 days, 30 days, or 60 days.

Protection For Impermanent Loss

The CVI team has created a toolkit of decentralized risk management solutions that are applicable and pertinent. This toolbox has just added Armadillo, which appears to be one of the most promising solutions for liquidity providers. The Armadillo (impermanent loss protection) had a cap on the number of premiums a user could buy in the beta version that the CVI team initially released.

With the new version, users will be protected from any impermanent losses incurred on the particular asset and over the given date ranges during the coverage period. By doing this, consumers can safeguard themselves against any impermanent losses while maximizing any returns or advantages connected with supplying liquidity.

In essence, impermanent loss protection is set up as an insurance policy represented by an NFT that indicates the coverage value, suitable time range, and the necessary token pairings. If a user experiences an impermanent loss and it meets the necessary requirements the money is automatically and securely returned to their wallet.

Armadillo is accessible across chains and on any chain, liquidity platform, DEX, or chain. The Armadillo team has given users complete control over the rules that apply to their impermanent loss of protection and external attacks and exploitation are prevented by smart contracts and oracles. 

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