EP 38: Economics of $HEGIC Explained. And How #HEGIC Works (visual explanation)
Economics Design
English - January 29, 2021 16:30 - 46 minutes - 64.4 MB - ★★★★★ - 9 ratingsEntrepreneurship Business Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
In traditional finance, one of the most important pieces of derivative products can be mentioned is options. Continuing on with our #DeFi options series, we will be sharing about #HEGIC, the top #options protocol by market cap.
A simple option is a contract that allows a holder to exercise a call or put option at a predetermined price in the future with the main purpose of minimising the risk (hedging) or speculation.
Hegic is a peer-to-pool option trading protocol that allows users to trade in options in a decentralised way.
Hegic works quite simply with the participation of two components, writers and buyers:
Buyers: who need to call or put option on Hegic. Buyers can customise parameters of Options such as expiry date, strike price.
Writers: Who sell call or put options to make a premium and to become a writer on Hegic users simply need to provide liquidity to the Hegic Pool.