Hegic (HEGIC)

Use Case of Hegic

• Options Trading: Hegic is a platform that allows users to trade options directly on the Ethereum blockchain.
• Decentralized Finance (DeFi): It provides a decentralized way to hedge or speculate on the price movements of cryptocurrencies.
• Liquidity Provision: Users can provide liquidity to the protocol and earn fees from options trading.
• User Control: Hegic lets users maintain control over their funds without relying on a central authority.

Pros

• Hegic is a decentralized, on-chain options trading protocol built on Ethereum and Arbitrum, allowing users to trade call and put options without intermediaries.
• It uses smart contracts for automated creation, trading, and settlement of options, providing transparency and trustlessness.
• Liquidity providers can earn premiums by supplying funds to ETH or DAI pools, turning option selling into a passive income opportunity.
• The HEGIC token enables governance participation, letting holders vote on protocol changes like fees and contract parameters.
• No KYC or registration is required, and users can trade using popular wallets like MetaMask or Trust Wallet.
• The platform offers a simple and intuitive interface for both beginners and experienced traders.

Cons

• Hegic’s trading volume and price have shown volatility and underperformance compared to some other Ethereum ecosystem tokens.
• The peer-to-pool model is still evolving, with some features like separate pools for buying and selling options being phased out.
• As with many DeFi projects, liquidity and market activity can fluctuate, which may affect trading efficiency.
• The HEGIC token has a large circulating supply with a relatively low price, which might impact perceived value.
• Governance and protocol changes depend on token holder participation, which can be limited.

For more details, visit hegic.co.

Founders

Hegic was founded by a pseudonymous DeFi developer known as Molly Wintermute. Molly is the sole known founder and core developer behind the project.

Background

Molly Wintermute is active on Twitter and shares updates about Hegic’s development and platform statistics. The project was first released on February 20, 2020.

Summary

• Founder: Molly Wintermute (pseudonymous)
• Role: Solo core developer
• Active since: Early 2020
• Focus: Building a decentralized options trading protocol on Ethereum

Investors in Hegic

• Initial Backers: Hegic raised about $12 million through an Initial Bonding Curve Offering (IBCO) to bootstrap liquidity pools.
• Liquidity Providers: Investors who deposit funds into ETH or DAI pools to sell call and put options, earning premiums.
• HEGIC Token Holders: People who buy and stake HEGIC tokens can earn a share of the 1% settlement fees from options trading.
• Community and Retail Investors: Anyone with a Metamask wallet and Ethereum can participate by buying options or providing liquidity.
• Anonymous Founder: The project was created by an anonymous developer known as Molly Wintermute.

No specific venture capital firms or large institutional investors are publicly listed as major backers. The project mainly relies on community participation and token holders.

Halal Status of Hegic

• Answer: No
• Reason: Hegic is a crypto token and platform related to options trading, which involves elements like speculation and uncertainty. Islamic principles generally consider such financial activities as non-halal because they may involve excessive uncertainty (gharar) and gambling (maysir), which are prohibited. Since Hegic operates in this space, it is not considered halal.