Hegic is an Ethereum contract repository that allows for peer-to-peer trading of options contracts. The protocol is based on the hedging contract idea. The instrument is an on-chain option-like contract that may be established, managed, and settled without the use of a central clearing entity.
Within the classic options market, the purchaser must have the right to acquire an item at a particular cost over a period of time, but not the duty. Put options, on the other hand, offer the owner the right to sell the underlying asset at a certain price. Traders who want a steady stream of income can also earn premiums by selling the futures. Hegic operates on identical principles, with the exception that traders who acquire call or put options are considered as holders, and contract sellers are known as writers.
For financial intermediaries that wish to improve trustless options trading, Hegic provides a technique that includes a pool model. This Ethereum-based platform is an options trading portal where traders may engage for earning profit or participate directly as a liquidity provider in exchange for a portion of transaction fees. Without the need for third-party processors, each contract is fully generated, managed, and resolved in a decentralized manner.
The HEGIC token is an ERC-20 utility token that distributes 100% of settlement fees to all token holders. The collected transaction fees are dispersed to all HEIGC holders at the end of each quarter. Holders may then engage in governance by deciding on interest rates, settlement fee amounts, strike price multipliers, and the sorts of assets that are supported.
HEGIC token holders receive a 30% refund when buying contracts.
What is Hegic [HEGIC]?
Hegic is an Ethereum-based on-chain options trading platform driven by hedging contracts and liquidity pools (ETH). A hedge contract is an on-chain, options-like agreement that gives the holder or buyer the right to trade an asset at a specific price (strike) and obligates the writer or seller to buy or sell an asset at a specific time.
These hedge contracts are non-custodial, untrustworthy, and unaffected by censorship. The hedging contracts are secured by the liquidity invested in them as well as the Ethereum Virtual Machine (EVM), which runs the code independently.
Who Are the Founders of Hegic [HEGIC]?
Hegic was established by Molly Wintermute, a pseudonymous DeFi coder, and Twitter figure who started active on January 28, 2020. Molly Wintermute’s tweets are focused on the Hegic platform’s improvements and upgrades, as well as data highlighting daily volume records on the derivatives trading platform.
What Makes Hegic Unique?
Hegic’s ETH and DAI pools are two of its most notable features.
The Hegic ETH pool is non-custodial, and liquidity providers can earn ETH in exchange for their services. The whole amount of ETH invested in this pool is utilized to sell ETH call options, and holders of these options can exchange their DAI for ETH at the strike price when the options expire. In exchange, the person who buys the option pays a higher price. When the contract expires in two days or up to four weeks, the premium is dispersed pro-rata to liquidity providers.
The DAI pool is reserved for DAI financial intermediaries and is commonly used to sell ETH put options. This pool is for traders who wish to buy puts from providers that give their portion of DAI in exchange for writeDAI tokens.
Where Can You Buy Hegic [HEGIC]?
Cryptocurrencies have shown to be quite useful as a means of payment, owing to the rapidity with which payments settle. Crypto transactions are generally super fast, whether they are worldwide or transmitted to your next-door neighbor. This is due to the fact that blockchain transaction verification does not require a centralized entity, is unaffected by currency exchange or other cross-border frictions, and may be done autonomously at any time.
Whether you’re a seasoned trader or making your first purchase, Kriptomat simplifies the process by offering a variety of payment options such as Binance, OKEx, ZT, MXC.com, and Uniswap (V2).
Frequently Asked Questions
Is it possible to purchase HEGIC with cash?
No. It is not possible to purchase HEGIC with cash. You can, however, utilize markets such as LocalBitcoins to first acquire BTC, and then complete the remainder of the procedures by moving your BTC to the appropriate AltCoin exchangers.
What Security Measures Does the Hegic Network Take?
The HEGIC coin is based on the ERC-20 standard. External price inputs are not required for the maintenance and execution of hedging contracts. This is used to defend oracles against price assaults and exploitation and to ensure the security of active hedging contracts.
On what factors the price of the HEGIC Depends?
Exchange inflows and outflows, technical and fundamental changes, the news cycle, and the overall economic climate are all variables that impact HEGIC’s price and market cap.
Hegic Official website – https://www.hegic.co/
Hegic Reddit – https://reddit.com/r/HegicOptions
Hegic Twitter – https://twitter.com/HegicOptions
Hegic Medium – https://medium.com/hegic