Question 1

What is Rope Token (ROPE)?

Accepted Answer

Rope Token (ROPE) is a governance token within the ROPE ecosystem, a decentralised platform built on the Solana blockchain to provide a cryptocurrency volatility index. The ecosystem also includes another token, ROPEV, which is tied to the volatility index and tracks cryptocurrency market fluctuations. The primary goal of the platform is to create a volatility tool similar to the Cboe Volatility Index (VIX) in traditional finance but tailored for the cryptocurrency market. ROPE leverages Solana's Proof of History (PoH) technology, ensuring high transaction throughput and low latency​.

Question 2

What is Rope Token (ROPE) used for?

Accepted Answer

ROPE serves as the governance token for the ROPE ecosystem, allowing holders to vote on proposals and decisions regarding the platform's development and index integration. The ecosystem is designed to provide traders and investors with tools to hedge against volatility or speculate on market fluctuations using the ROPEV token.

Users can also collateralise ROPE to mint ROPEV tokens, which track implied market volatility derived from Bitcoin and Ethereum options prices. This functionality enables users to gain exposure to volatility without directional market risk. The ecosystem incorporates mechanisms for decentralised staking rewards through its native platform ROPEx​.