coming out of retirement (yfi pool1 U JELLY?) for the new 's of Defi - derivatives and options.

a Degen-style ( @DegenSpartan) thread with @HegicOptions $HEGIC with inside look at thought process, gains, and free alpha

HOW I STARTED https://twitter.com/DegenSpartan/status/1143715805529423875

1/n

first time I've heard of @HegicOptions was from a vc crying about their portfolio

https://twitter.com/bitcoinslut_/status/1315061139718451200

with the launch of v888, emissions were changed and caused the $HEGIC token to crash

is this thing investable or not?

2/n

before i could do any additional due diligence, a whale placed a 3500 eth call option, netting 35 eth in protocol FEES.

with 35 stakers in the pool, each got paid 1 eth!!!

i knew i had to FOMO into the token immediately

staking rewards to date https://twitter.com/HegicOptions/status/1317478812561584129

3/n

wtf is the crypto options market

CEX have over $2.5 billion in open interest for $BTC and $ETH, with @DeribitExchange the leader

on the decentralized side, @HegicOptions @opyn_ have products live. Others @OpiumExchange @PotionLabs @fin_nexus @PrimitiveFi

4/

crypto options basics

if you think numba go up, buy calls (I am betting $eth to be over $400, 4 weeks from now)

if you think numba go down, buy puts (I am betting $eth to be under $400, 4 weeks from now)

you only lose the premium (fees) for the calls/puts

5/

real maths

100u $eth call, strike price of $400, holding for 4 weeks

Cost of call: $3105

Cost of 100 $eth today (~394): $39,400

That's less than 1/10 paid in fees for all the benefit of eth rising above $431

6/

not financial advice

traders use options to hedge risk, lock-in , and other

options often get complex and it's not for everyone

up until now traders only have centralized options with yucky KYC https://twitter.com/DeribitExchange/status/1319003303485820928

until @HegicOptions v888 came LIVE

7/

real financial advice

if you are real trader, @DeribitExchange is awesome

fast centralized servers
customer service
employees with linkedin profiles

and most importantly well priced options with lots of maths

that's cool

but deep down we are all degens...

8/

Decentralized and Liquid

Hegic is first to market with a decentralized options pool

liquidity providers pool $eth and $btc for options buyers

profits and losses are socialized across the pool

over a long period of time, most options expire worthless

9/

not financial advice

by being an LP, you are basically providing house money for gamblers to play with

if that sounds risky, that's because it is

DYOR

https://medium.com/hegic/hegic-protocol-risks-breakdown-d3dcf8c85d01

there is another way to profit from this trade

free alpha

10/

first, a side story

growing up, i've always wanted to own a casino

when i finally had some money, i went to the centralized authorities to get a permit

they said no, only vampires can own casinos

(see sheldon adelson, ceo of largest casino group Sands)