Volmex Finance, a DeFi protocol, offers tokenized volatility indices for Bitcoin (BVIV) and Ethereum (EVIV), mimicking the CBOE’s VIX. While innovative, its reliance on external data sources like Deribit options introduces oracle manipulation risks. Unlike the VIX, which uses filtering to mitigate outliers, Volmex’s methodology lacks clear safeguards against sudden price spikes or manipulation of input data, potentially allowing bad actors to exploit the system for economic gain. Integrating decentralized oracles like Chainlink could enhance security by providing tamper-resistant data. To minimize risks, Volmex should adopt robust filtering algorithms and transparent oracle integration, ensuring the integrity of its volatility indices and fostering trust in its decentralized ecosystem.