Correlation between U.S. equities and synthetic commodities such as Bitcoin (BTC) and

Ethereum (ETH) has increased in recent years, reflecting the growing integration of traditional

and digital systemic risk. As this correlation deepens, volatility in one domain increasingly

transmits to the other. I propose a crypto-native synthetic commodity (FEAR), designed to

anchor the CBOE Volatility Index (VIX), as a means of hedging systemic risk and measuring

market fear. Through predictable, once-daily elastic supply adjustments tied to VIX movements,

FEAR transforms volatility into a tradable on-chain asset. By coupling traditional market

sentiment and decentralized liquidity, FEAR establishes the foundation for the world’s first 24/7

global fear index. As participants chase a moving rebase, the market discovers its own fear.

 

 

FEAR aims to become an open-source measure of global risk sentiment by bridging traditional

volatility and decentralized liquidity.