Hegic: An Overview of the Ethereum-based Option Trading Protocol - Latest cryptocurrency news

Hegic: An Overview of the Ethereum-based Option Trading Protocol

Hegic is an option trading protocol built on the Ethereum blockchain, and HEGIC Coin is the native cryptocurrency of this platform. Users can execute all option transactions using Hegic. Options are defined as the fundamental building blocks of financial services that enable investors to implement robust risk management strategies. Therefore, the Hegic platform is seen as a promising platform for the future.

Hegic (HEGIC) is a cryptocurrency that grants economic and governance rights to its holders. Fee payments on the platform can be made with HEGIC coin. As Ethereum’s DeFi space diversifies, there has been a need for a comprehensive solution to create and trade integrated and verifiable options on the chain, and Hegic strives to meet this need.

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To buy an option in Hegic, investors need to pay the current premium for the option they want to buy. Since Hegic follows the American-style application, these options can be used at any time. Additionally, it is stated that selling options in Hegic is easier than selling traditional options. The only thing investors need to do is deposit money.

Hegic’s options, which use flexible American-style options, are more expensive compared to its competitors such as Deribit or Opyn. American options offer option holders the choice to use them whenever they want instead of waiting until the contract expires, which means higher premiums for sellers.

Hegic is a project that emerged from the efforts of a single developer known as Molly Wintermute, and there is no information available about the developers’ backgrounds. Wintermute announced the project on the EthResearch forum in February 2020 and deployed the protocol to the mainnet in April 2020. The project’s Discord and Telegram channels are also managed by Wintermute, proving that it is a one-person operation.

HEGIC Coin has gained investors’ attention, especially with the recent popularity of staking. Furthermore, Hegic brings a new perspective to the options market, but this also means a different set of risks compared to traditional options. Therefore, investors seem to be cautious about it. It would be useful to look at historical data and current figures to better understand the comments about HEGIC Coin.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
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