Resources

• Hegic Onchain stats https://explore.duneanalytics.com/dashboard/hegic-v2

TLDR;

• Hegic is american options, meaning that options can be exercise any point of time
• Hegic options are build base on peer to pool model instead of traditional peer to peer, which allows them to create a single liquidity pool.
• Hegic allows any strike price, any strike date.
• Right now there is no secondary market to trade Hegic Options premium, but it can be tokenized into NFT or ERC20 to make it tradable.
• Pricing Formula (not Black-Scholes formula)
  • put options pricing formula: premium = sqrt(period) * IV * strike / price
  • call options pricing formula: premium = sqrt(period) * IV * price / strike

Issue about Hegic

• Low utilization ratio

• Implied Volatility is done offchain, and it's not much being updated (frequency: ~ once a week)

  

• Option LP are actually losing money

• Not much transactions for options?

  

• There're more CALL than PUT, if the underlining assets go a single direction, LP will be rekt.