Hegic.co is an on-chain options trading protocol that is powered by hedge contracts and liquidity pools on Ethereum (ETH). A hedge contract is an options-like, on-chain contract that gives the holder or buyer a right to buy or sell an asset at a certain price (strike) as well as imposes an obligation on the writer or seller to buy or sell an asset at a certain time period.
These hedge contracts are non-custodial, trustless and censorship-resistant. The hedge contracts are guaranteed by the liquidity locked into them and the Ethereum Virtual Machine (EVM) that executes the code autonomously.
Hegic introduces a mechanism that integrates a pool model for liquidity providers that want to enhance trustless options trading. This Ethereum-based platform is an options trading portal where traders are able to engage for profit, or directly participate as a liquidity provider for a share of the transaction fees. Each of the contracts is fully created, maintained and settled in a decentralized way without any involvement of third-party processors.
The HEGIC token is an ERC-20 utility token that is used for the distribution of 100% of the settlement fees between all of the token holders. The transaction fees that are accumulated are distributed to all HEIGC holders throughout each quarter. The holders can then participate in governance by determining the rates, the settlement fee sizes, the strike price multipliers and the types of assets supported.
|Defi Coin Name||Hegic|
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Trade WBTC & ETH call and put options.
Non-custodial options with on-chain settlement. Choose any strike price, exercise at any moment.
Write WBTC or ETH call and put options.
Provide liquidity and start earning yield on WBTC or ETH. Auto diversiﬁcation of capital allocation.
Earn protocol’s fees in staking rewards
Receive liquidity mining & utilization rewards in HEGIC. Participate in staking and earn WBTC or ETH.
Who Are the Founders of Hegic?
Hegic was founded by a pseudonymous DeFi developer and Twitter personality known as Molly Wintermute, who became active on January 28, 2020. Molly Wintermute’s tweets focus on the developments and upgrades to the Hegic platform and the statistics that highlight the daily volume records on the derivatives trading platform.
It IS Simple Trade Option
If the price of underlying will rise higher than 2,048.89 during the next 1 day your option will expire worthless.If the price of underlying will fall down lower than 2,048.89 during the next 1 day you will be able to exercise your option and take profits.
Feel The Magic Of Hegic
- It’s a really elegant mechanism and interestingly offers a pool model for liquidity providers (those selling/writing options).
- I’ve been playing around with Hegic Options puts (ATM strikes with customizable duration): made 65% ROI in less than a week.
- Opened my Hegic yesterday. Now my long ETH positions are safe(…er). Its super simple. Try this #DeFi magic.
- Using Hegic Options gave me the same weird feeling that I felt the first time that I sent a BTC transaction.
Why Option Is A Great Tool For You
BTC And ETH Holder
You want to buy more BTC or ETH for your mid/long-term portfolio, but you are unsure if the price won’t drop in the next few weeks. Buy BTC or ETH plus an WBTC or ETH put option to protect the value of your assets.
BTC & Eth Trader
You want to open a long/short position and buy/short sell BTC or ETH. Buy a BTC or ETH put (if you have longs) or call (if you have shorts) in order to protect the position from the potential losses.
Btc & ETH Miners
You know how much BTC or ETH you will mine in the next month and you need money to cover your mining farm expenses, but you are unsure if you will have profits. Hedge the value of your future mining revenues using BTC or ETH put options.
Onboarding BTC & ETH Holder
You want to buy BTC or ETH for you mom, dad, friend, girlfriend but you don’t want them to lose faith in crypto if the price will fall down. Buy a BTC or ETH put option to protect the value of BTC or ETH and have a piece of mind.
What Makes Hegic Unique?
Some of Hegic’s key features are its ETH and DAI pools.
The Hegic ETH pool is non-custodial, and the liquidity providers can earn a premium in ETH. All of the deposited ETH in this pool is used for selling ETH call options, and holders of these options can swap their DAI for ETH at the strike price after they expire. In exchange, the one who purchases the option pays a premium. This premium is distributed to liquidity providers on a pro-rata basis when the option expires within two days or up to four weeks.
How Is the Hegic Network Secured?
The HEGIC token is an ERC-20 token. The maintenance and execution of hedge contracts do not depend on external price feeds. This is used to guarantee the security of active hedge contracts and to protect oracles from price attacks and exploits.
The DAI pool is for DAI liquidity providers and is typically used for selling ETH put options. This pool is meant for traders that want to purchase puts where providers supply their share of DAI for writeDAI tokens.