I'm long $HEGIC, but I've never said why

Let me do so now

$HEGIC = an options protocol

[Notice the word "protocol"]

More 👇

annoying definition time:

options are a way to hedge or protect your investments in things like $BTC and $ETH

or to make leveraged bets on big price moves...

translation, they are advanced tools for chads-squared


$HEGIC offers options on $ETH and $wBTC atm

What excites me about it is this word: protocol

$HEGIC = a set of rules that enables the construction of an entirely new options ecosystem

It = scaffolding that other devs can build different financial tools and products on

When I think of $HEGIC, I think of how Uniswap $UNI has revolutionized decentralized trading

& if you don't think Uniswap has revolutionized decentralized trading, read this:

People call Uniswap a peer-to-peer trading platform, but that's not really accurate

When you route a trade through Uniswap, you're not trading directly with another peer

You're trading against a pool of liquidity that's locked into a smart contract

That's why people call it a peer-to-contract or peer-to-pool protocol

When you trade against a pool, you solve a lot of problems

you don't have an annoying ass orderbook

you don't have to wait for another bloke to be on the other side of your trade

you can trade against the pool whenever tf you want

That's spawned all sorts of innovations

(to name a few: LP tokens that can be lent out or used for farming... liquidity migration... dex aggregation, etc)

Basically, Uniswap makes it possible to trade whatever token you want at any time

$HEGIC = the same for options

It's a protocol that makes it possible to trade options instantly... no KYC, no orderbook, no waiting for another trader to take the other side of your bet

Once you have that, you have a scaffolding for innovative products in options

In order to be useful, $HEGIC needs deep liquidity. It gets it through incentives

Again, Uniswap is a good example (this is all grossly simplified, but it does the job):

People deposit cryptos into Uniswap pools because they can earn trading fees on them

People deposit cryptos into $HEGIC pools because they can earn fees on them

Now, we all suspect that eventually Uniswap will begin charging a fee to traders, and it will distribute that fee to $UNI holders

Hegic is already doing that, kicking out fees to $HEGIC stakers

You buy $HEGIC, you stake it on the website or through something like $zLOT @zLOTFinance and you start collecting $ETH or $wBTC as other trade options on the protocol

Tons of other reasons to be bullish on $HEGIC's growth:

- Adding more tokens beyond $ETH and $wBTC

- A secondary market for Hegic's options

- Secondary use cases for pooled liquidity?

- Sweet teasers from Molly


- Already big signs of product market fit (a $5 million order anyone?)


- Impressive growth

More stats here: https://duneanalytics.com/slash125/hegic-v2

- And most tantalizing... a possible (likely?) integration with Yearn / $YFI

tldr if you look at $HEGIC like one of many VC-funded "options platforms" out there, you're thinking too small

it will not be a cute little walled garden

it will not be a reinvention of centralized options

it is hunting out tradfi options solutions + crushing bones
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