Hegic (HEGIC) is an Ethereum based options trading platform. It makes use of specialized smart contracts, hedge contracts, and liquidity pools to power its platform and was founded in 2020 by a developer using the pseudonym Molly Wintermute. 

The project aims to bring transparency, trustlessness, and direct on-chain settlements to crypto trading, in particular for Ethereum based assets. The platform allows traders to buy and sell put and call options for ETH and wBTC, amongst other assets.

HEGIC is the platform’s native token. To see the current price of HEGIC please view our live price chart above.

What are Hegic (HEGIC)’s key features and how does it work?

The Hegic platform uses hedge contracts. There are two main types of users who are part of the hedge contract process. These are buyers of hedge contracts and writers of hedge contracts. Contract holders, or buyers, are given the right to buy and sell an asset at a predetermined price (strike price), and obligate contract writers, or sellers, to buy or sell an asset during a certain time frame. As such, the Hegic model incorporates aspects from traditional finance with crypto options trading to increase its functionality.

Liquidity pools also form a key component of the Hegic Platform. These are designed especially to gather and accumulate liquidity from many liquidity providers, or writers of hedge contracts, in order to reduce potential risk and offer deep liquidity. Hegic liquidity pools are non-custodial, which means that no third party has access to funds except for the holders who have purchased the hedge contract.

Hegic’s native token is known as HEGIC, it is a utility token. It is an ERC-20 standard token that is predominantly used for distributing rewards. Users can earn HEGIC by holding the token.

Specific benefits of holding HEGIC include:

• 30% discount when purchasing hedge contracts on the Hegic platform
• Priority unlocks on liquidity for hedge contact writers
• Liquidity providers can earn HEGIC, as well as premiums paid in ETH and wBTC

What is noteworthy about Hegic (HEGIC)?

For options traders, the move to DeFi offers various advantages over centralized trading platforms. Some of Hegic’s key advantages include:

• No KYC
• Censorship-resistant and non-custodial trading
• Verifiable on-chain settlements
• Yield earning

Additionally, Hegic plans to develop its range of products and expand its offerings to various assets in the Ethereum ecosystem, and further finetune its hedge contract functionalities.