What is Hegic? Hegic (HEGIC) is a decentralized options trading platform on Ethereum. With crypto money, you can buy and sell options for ETH and WBTC. In this article, what is Hegic, what does it offer, what is HEGIC coin, what does it do? You can access answers to questions that investors wonder, such as how to buy HEGIC. As Kriptokoin.com, we have prepared it for you.
What is Hegic? What Does It Do?
Hegic is a decentralized options trading platform on Ethereum. With the token, you can buy and sell options for ETH and WBTC. Options in decentralized finance (DeFi) work best for those looking to speculate, hedge their positions, or provide liquidity. Hegic Protocol is an on-chain trading protocol powered by liquidity pools and hedging contracts.
If you are an options trader from the traditional financial world, you will notice some differences when trading options on DeFi. Some of the features of on-chain options trading with Hegic are:
- No KYC or email registration required
- Censorship resistant trade
- Verified on-chain settlement for options contracts
- Return as a liquidity provider
What is HEGIC Coin?
HEGIC coin is Hegic’s native token. The token is an ERC-20 token that is primarily used to distribute rewards and as the platform’s general utility token. While users can earn rewards in the form of ETH and wBTC, liquidity providers and platform users can also earn HEGIC and receive special benefits by holding the token.
How Does Hegic Work?
Users join the Hegic platform primarily as buyers of hedging contracts or as authors of hedging contracts.
First, Hegic users can buy call and put options for certain Ethereum-based assets. This is advantageous for many reasons. For example, the decision to participate in an options call benefits your overall investment strategy or reduces some type of risk. Most traditional and crypto options trading relies on having individual owners and individual writers in a transaction. But Hegic’s liquidity pools are designed to accumulate liquidity from many liquidity providers or writers, which reduces downside risk and offers deep liquidity.
Second, those who find the potential returns of writing hedging contracts attractive enough will “write” both call and put options on the Hegic platform by allocating various assets such as wBTC or ETH to the respective liquidity pool contracts to generate returns. Hegic’s liquidity pools are not supervised, meaning that no one has access to the author’s funds other than the owners who purchased the protection contract.
What is Hegic? How to Buy HEGIC Coins?
Hegic is traded on many crypto exchanges with large trading volume. HEGIC coin is currently listed by exchanges such as OKX, BingX, KuCoin, MEXC. To purchase the token, it is necessary to become a member of one of these exchanges and verify the identity. Investors who have created their accounts completely can buy HEGIC coins by depositing money in their wallets.
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