Topic: Volatility Swaps and other structured products (Read 1182 times)
I was hoping to use this forum as a sounding board and to gauge interest in other types of derivatives. I'd be interested in managing such funds but would probably require some sort of escrow or some form of multi signing from better know forum members. I'll post details of a few ideas I've had soon....
I've been watching with interest what Deprived has accomplished with the DMS set of funds. This particular form of structure is a good idea and could be replicated to create a wide range of potentially useful products. In particular there is an obvious need for a "volatility swap-type-product" which merchants could use as a hedge against extreme movements during lengthy conversion to and from fiat. Another nice effect is that the paired nature of the funds effectively remove the large bid-ask spread observable in the highly illiquid markets for bitcoin derivatives. A call-put type fund modelled in DMS could also be envisioned.
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