Hegic is a Peer to peer options trading protocol built on the Ethereum platform, bringing simplicity, reliability and convenience to users. Launched in August 2021, Hegic has quickly become a popular choice for those looking to participate in the Options market without registration or through intermediary exchanges.
What is Hegic?
Overview of Hegic
Options are one of the popular derivatives in traditional finance, but starting to trade options is quite difficult for new investors, many centralized exchanges not only require numbers The minimum account balance also requires you to provide personal information to be able to trade. Hegic decentralizes the options trading process by providing a decentralized trading platform for everyone, even those new to options trading.
The protocol offers flexibility with 24/7 trading capabilities, no KYC required, and no registration required to start trading. This creates a favorable environment for traders who want to access the options market without complex barriers. People can buy and sell ETH, wBTC options contracts with 0% trading fees.
Mechanism of action
Hegic uses smart contracts called: Hedge contracts, which are similar to buy or sell options in traditional finance. Everyone can participate as a creator or buyer of hedge contracts.
Option Creators: These are liquidity providers, they are the ones who create call or put options (can be users or protocols). Options creators can earn 29% annual returns on their money.
Option buyers: These are people who buy call or put options. Buying options gives people the right (but not the obligation) to buy (call option) or sell (put option) the contract’s underlying assets such as ETH or wBTC at a predetermined price or at the date contract performance.
The cost of holding an options contract is 2% of the premium per week plus a 1% settlement fee. When the contract expires, payment and insurance premiums will be made automatically. In which insurance fees will be distributed to contract sellers, while payment fees will be distributed to HEGIC token holders.
The Hegic Project Difference
One of the outstanding advantages of Hegic is the peer to peer model between users and the protocol. Instead of relying on brokers or liquidity providers, Hegic uses a peer-to-peer model based on a co-owned network. This means that liquidity is already available in the protocol, there is no need to wait for a market maker or counterparty to buy options on Hegic. You can choose to buy or sell ETH or WBTC with the option size and holding period of your choice, then choose one of the closing prices. Click to buy, confirm the transaction and everything is ready.
Another advantage of Hegic is the integration of options strategies for everyone to easily use. You can use one-click strategies like Straddle, Strap and Strip to enter into complex trades with ease. Instead of having to buy options individually and calculate profit and balance for each position, you can trade structured options products on Hegic in just one click. This saves you time and effort in creating complex strategies and optimizing your profits.
Hegic is constantly improving and expanding. Recently, the protocol launched Hegic HardCore, a new version with many new features and notable improvements.
Development Roadmap
Update…
Coreteam
The founder of the project is Molly Wintermuteis quite a famous person in the Crypto world.
Backer and Partners
Update…
Tokenomics
Basic information about Hegic Token
- Token Name: Hegic.
- Ticker: HEGIC.
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Contract: 0x584bc13c7d411c00c01a62e8019472de68768430.
- Token Type: Utility, Governance
- Total Supply: 3,012,009,888 HEGIC.
Token Allocation
Token Use Case
- Hegic is used for staking to earn rewards
- Platform Governance: Users holding tokens can vote on proposals on the protocol.
- Premium discounts for options contract owners
Exchanges
Currently you can buy Hegic tokens on exchanges such as Kucoin, Okex, Sushiswap, Uniswap,…
Hegic Project Information Channel
- Website: https://www.hegic.co/
- Twitter: https://twitter.com/HegicOptions
- Medium: https://medium.com/hegic
- Discord:
Summary
With a combination of simplicity, flexibility and reliability, Hegic has built a loyal community of users. The protocol has reached a major milestone with over $500 million in total options trading volume. However, the project was delisted on Binance on April 11, 2022, Binance announced that the project did not meet the platform’s standards. This caused HEGIC’s price to plummet to $0.01 after the delisting announcement, down 95% from its highest level 7 months before the announcement. If you are interested in the Hegic project, follow me to update the latest information about the project.