Benchmark Protocol launched its native token (MARK) a week ago on 11/24. To celebrate the launch, the team rolled out the “Benchmark Launchpad” where liquidity providers can earn $MARK from 20 Liquidity Pools. The program enables LP’s to earn 9% of the Benchmark network over a month’s time. Starting today, the Benchmark team increased rewards in the MARK– USDC and MARK- ETH Liquidity Pools to 8X Rewards, up from 3X one week ago.
To learn more about our Benchmark Liquidity Mining Campaign: https://launchpad.benchmarkprotocol.finance/
The current DeFi space has been marred with inconsistency. Many projects in the arena have failed as a result of technological vulnerabilities, price volatility and overarching market skepticism. However, stakeholders rightfully continue to see the inherent value of decentralized finance. Unfortunately, Stablecoins traditionally possess unfavorable risk profiles as they compete with their physical counterparts.
Benchmark Protocol is the first Cryptocurrency Hedge utilizing the volatility index (VIX). Benchmark Protocol creates a bridge, driven by VIX data, connecting traditional finance to cryptocurrency markets.
The Benchmark token (MARK) is a supply-elastic, collateral utility. The supply of MARK adjusts by tracking the movement of the CBOE volatility index. It injects liquidity during periods of high volatility in correlation with global equities markets. This creates a unique, adaptive supply mechanism to optimize value and stability.
Additionally, the MARK token is pegged to Special Drawing Rights (SDR); a composite international reserve asset, composed of the U.S. Dollar, Euro, Great British Pound, Chinese Yuan, and Japanese Yen. Integrating such metrics provides a level of consistency and stability lacking from traditional stable-coins.
Harrison Woytko, founder of Benchmark Protocol said:
Today, industrialized and established asset classes within the cryptocurrency space have an augmented connection with the movement of capital markets; the assimilation of a protocol with VIX data is significant and necessary, especially as the crypto space evolves.
The major challenges within crypto markets today is liquidity fragmentation, volatility and third party custodial services. These challenges are further amplified by stock-market volatility and the aftermath of COVID-19. Both investors and macro markets are facing elevated degrees of uncertainty regarding the physical and financial impacts of the virus. The derivatives market, which is heavily relied upon by the VIX, is said to be valued at over $1 quadrillion dollars. The crypto markets are bereft of a true proxy on volatility, and Benchmark is primed to assimilate to one of the biggest musts in crypto markets: a true hedge.
Exposure to the MARK token, Benchmark’s native asset will serve users by pulling in daily VIX closing prices at 4 PM EST (coinciding with the close of the New York Stock Exchange floor). This is the most volatile time of the trading day, so pulling in key data points is necessary to reflect the true state of the markets. The VIX data points serve as a catalyst to augmenting the elastic nature of the protocol’s total supply of tokens in the Benchmark ecosystem.
The VIX data points serve as a catalyst to augmenting the elastic nature of the protocol’s total supply of tokens in the Benchmark ecosystem. Volatility is critical to the operation of all financial markets. Relevancy matters, as nearly all industries have faced substantial increases in distinctive risk from the pre-COVID-19 period to now. As stabilization and price discovery take hold in crypto markets, it is clear that nominal changes in total risk can be explained by daily change in the VIX, leveraged by Central Bank Rate Targeting and the overarching reaction to COVID-19 news.
Learn more by visiting Benchmark Protocol’s website