What is Hegic (HEGIC)?
HEGIC is the native token of the Hegic Protocol, which is an on-chain options trading platform. The protocol employs hedge contracts and liquidity pools based on Ethereum. Hedge contracts are on-chain contracts that resemble options and offer the seller or writer the right and the responsibility to buy or sell a specific asset at a defined price within a given time frame (strike). The EVM is used to execute the code of these contracts.
The Hegic price chart is featured above for those seeking for the current HEGIC price.
The main mechanism presented by Hegic is an options trading portal that incorporates the notion of liquidity pools. In exchange for a share of the transaction expenses, it enables users to directly offer liquidity or trade options for profit. Besides, it is worth noting that there are no third parties required in the process of establishing and maintaining these contracts.
Talking about liquidity pools, ETH and DAI pools are two of the main elements of the whole project. The ETH pool of Hegic is a non-custodial pool. The pool's entire deposit of ETH is utilized to sell ETH call options. Those who own these options can exchange their DAI for ETH at the strike price when the options expire. Besides, all liquidity providers receive a premium in ETH from this pool.
The DAI pool, on the other hand, is intended for DAI liquidity providers. However, selling ETH put options is the traditional usage of it. Thus, this pool is designed for investors who want to buy put options in which providers supply their proportion of DAI in exchange for writeDAI tokens (Hegic DAI LP tokens).
Use Cases of HEGIC Tokens
The HEGIC token is the platform's native utility token based on the ERC-20 token standard. The following are the main use cases of HEGIC crypto assets:
- Governance. HEGIC tokens grant holders voting rights while deciding the future of the project.
- Rewards. HEGIC tokens are used to reward liquidity mining and trading. The rewards are distributed in rHEGIC tokens that have variable vesting periods.
- Means of payment. Settlement fees are covered using HEGIC tokens.
- Staking. HEGIC tokens can be staked in order to receive rewards.
Planning to buy HEGIC coins? If you are, make sure to check the live Hegic price chart above. You can find the current and the previous HEGIC price there.
Who Founded Hegic?
The Hegic crypto project was founded by Molly Wintermute, who is a pseudonymous developer and Twitter personality.
