Cryptocurrencies can play a significant role in the emerging global economy. But due to several reasons, they may be very unpredictable and dangerous investments. With conventional terminologies like Call, Put, and options trading, Hedget offers decentralized options to protect the investments against unpredictable market fluctuations. Investors would enjoy the versatility that these options provide, making Hedget an exclusive protocol that keeps the investor funds secure.
What is Hedget protocol?
If you’re reading this, I’m assuming you’re familiar with DeFi. During the summer of 2020, DeFi, also known as decentralized apps, received a lot of coverage. DeFi applications have been increasingly expanding, with consumer numbers and trade rates plummeting. As of July 2020, the gross amount of assets stored in DeFi has surpassed $1.5 billion, a 140 percent increase from the beginning of the calendar year. Isn’t that amazing? The DeFi systems give users more flexibility and allow them to manage their crypto assets further.
Hedget is another DeFi network that aims to provide the public with more open services. Hedget is a decentralized platform for options trading. Users can buy and sell option products on the marketplace by putting up cryptocurrency as security (both stablecoin and traditional cryptocurrencies). As a result, consumers can protect their crypto assets as well as their debt positions on lending protocols such as Compound and Aave.
How do Hedget options work?
On Hedget, users will be able to create and exchange options. The system will produce a token to represent the option any time an option product is made. The platform will only allow best-fit combinations of maturity dates and strike prices to ensure optimal option liquidity. The network would also have decentralized exchange elements for exchanging options-based tokens.
The Underlying Asset:
The initial version of Hedget will track etherium as the underlying asset. Later, the network will be expanded to support ERC-20 and other blockchain tokens.
Option Type (Call or Put):
One of the most important factors is the option type. A Call option is one where you predict the price of the underlying asset to rise. On the other side, it is a Put option if you predict the price will fall. You pay a small fee to purchase whatever option you choose. This fee is not refunded if you are not satisfied with your purchase.
The term “maturity date” refers to the point in time that options will be exercised.
The Hedget Token is the Hedget Protocol’s native utility token (HGET). It is the protocol’s governance coin, with a cumulative availability of 10,000,000.
HGET is an Ethereum-based token (ERC-20). You’ll need to stake some HGET to be able to build and exchange options. The token also grants voting rights to the bearer. Holders can vote on modifications to the system’s design and the distribution of reserve tokens, etc. When liquidity providers provide liquidity to the Hedget protocol, they receive HGET.
What is HGET Distribution?
HGET is limited to a total stock of 10,000,000. The distribution allocation of percentages of overall supply is as follows:
- Fixed supply for advisors and team: 10%
- Private Sales: 13%
- Liquidity Mining: 50%
- Stake Drop: 7%
- Reserve Fund:20%
Hedget provides much-needed relief from the instability and rigidity of existing DeFi networks. It can also avoid instant liquidation as USED in blockchain-based lending systems. Hedget’s use in leveraged trading, as well as its potential to hedge against price fluctuations, eliminates the need for third-party confidence.