Volatility Score

The "Volatility Score" is designed to measure how much the price of a token fluctuates over various time periods. It combines the percentage price changes over several time frames, giving an average measure of volatility that is then scaled to a usable range. Here’s how it works:

Volatilty Score is Composed Of The Price Change Over Different Time Periods

Volatility Score= Absolute Value (A+B+C+D+E+F)

Where

A is 1 hour

B is 24 Hours

C is 1 week

D is 30 Days

E is 60 Days

F is 90 Day

A higher Volatility Score indicates that the token's price fluctuates more dramatically, making it potentially less suitable as stablecoin collateral due to increased risk of price instability. Conversely, a lower score reflects more stable price behavior over time, which is generally more desirable for collateral backing a stablecoin.