EP 38: Economics of $HEGIC Explained. And How #HEGIC Works (visual explanation)

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.