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DeFi is raging and emerging and there is an immense amount of potential that it holds including creation of infrastructures to solve problems regarding contract security, liquidation risks, speed as well as cost of transactions and more.
Hedget is a rising, decentralized crypto-options protocol that is non-custodial, in nature. Hedget aims to fight the volatility that is prevalent in the crypto market and is thus exploring the largely unexplored aspect of DeFi, which is options trading and other derivative products.
In collaboration with Chromia, Hedget is seeking to become the default options trading platform, specifically for DeFi tokens. Hedget is backed by a lengthy list of strategic investors and partners including Chromia, FTX/Alameda Research, Orion Protocol, NGC Ventures and FBG Capital.
The protocol utilizes a maker and taker fee model for its fee structure, along with a settlement fee.
In the future, when margined options are implemented, the HGET token will also serve as a measure for security and a reputation engine. Options writers who wish to offer options without providing the 1:1 collateral, will be required to stake HGET tokens, which will be used to purchase completely collateralized options as a counter, in case of risks related to Capital insufficiency. This mechanism makes sure that the users are not adversely affected by the insolvency of any options writer. As the platform progresses along with its development map, a DAO will be established and HGET tokens will be used to determine the transaction fees, reserve requirements, as well as general functions and features of the platform.
To find out more, check out Hedget’s white paper.
To view more on HGET holders and stats, check out HGET stats.
Background
Hedget is powered by a background filled with DeFi applications. The volatility of the growing crypto market can be countered by choosing options trading which has minimal risks involved. It was launched in September 2020. The project is headed by Malcolm Lerider, a former Research & Development Manager for NEO blockchain. The core team includes Serge Lubkin (Ex-marketing lead at Chromia), Andrey Sarayev (who has over nine years of experience in financial quantitative analysis), and Riccardo Sibani (developed concepts and POWs in Ethereum and more)with a double degree in Cloud Computing. The protocol’s advisors are Roger Lim, NGC Ventures’ founding partner, and Alex Mizrahi, the founder of several academic papers centred around Bitcoin. With the ability to evade volatility in both directions, these platforms will be able to insure themselves against risks of liquidation and insolvency. Besides this, Hedget options can also be used as a straightforward trading tool to profit from price fluctuations in the market. The team has prioritised leveraging the capabilities of multiple blockchains. Hedget has an implementation developed for Binance Smart Chain (BSC), as well as a separate implementation on Ethereum. In addition, Chromia is in the process of being incorporated as a Layer 2 enhancement for the Ethereum blockchain network. The Hedget foundation envisions long term goals such as providing development and stewardship of the platform over the next few years, and establishing a DAO eventually that will govern the rules and mechanisms of the platform.How does it work?
The style of options implemented is European style, which means that the option can only be settled at the time of expiry. The maturity dates for the options are every Friday, at 8:00 UTC+5.
HGET Token
The Hedget Token (HGET) is the native utility and governance token of the Hedget platform. It is issued on the Ethereum blockchain network which adheres to the ERC-20 contract’s standards. In addition, it will be added on a Chromia sidechain as well as the Binance Smart Chain. The HGET token holders can choose to either vote directly on the blockchain or through the UI (https://hedget.com/proposals/) on matters, regarding the addition of new assets, default options parameters, UI improvements and more. The protocol has a fixed maximum token supply of 10,000,000 HGET tokens. 1,717,170 tokens were created during the TGE and were distributed between private and public sale buyers as well as the team, according to the Whitepaper.Uses:
The HGET token will fulfill numerous functions for the platform. HGET tokens are required to be staked to interact with the platform, and all trading commissions on Hedget are paid in the form of HGET tokens. HGET is also used to prevent spamming of orders which can result in API overloads and order book manipulation. Staking requirements will increase as the value, in terms of price and frequency of a user’s interactions increase.The future of HGET Tokens
In the future, when margined options are implemented, the HGET token will also serve as a measure for security and a reputation engine. Options writers who wish to offer options without providing the 1:1 collateral, will be required to stake HGET tokens, which will be used to purchase completely collateralized options as a counter, in case of risks related to Capital insufficiency. This mechanism makes sure that the users are not adversely affected by the insolvency of any options writer. As the platform progresses along with its development map, a DAO will be established and HGET tokens will be used to determine the transaction fees, reserve requirements, as well as general functions and features of the platform.
To find out more, check out Hedget’s white paper.
To view more on HGET holders and stats, check out HGET stats.
