Sarson Funds Oct 12 . 2 min read

Hegic Options: A Robust Solution for U.S. Crypto Derivatives Investors

Hegic Options: A Robust Solution for U.S. Crypto Derivatives Investors

A robust derivatives solution is an important step for the cryptocurrency market. One of the main problems with current crypto derivatives exchanges like Deribit is that they forbid U.S. investors from participating on their platform due to regulatory risk. This results in U.S. investors, primarily retail investors, being left with no chance to participate in the market. This problem is not central to just the United States, as just last week the Financial Conduct Authority of the UK banned the sale of crypto derivatives to retail customers.

Hegic Options brings regulatory risk solutions to any retail investor by creating a non-custodial, on-chain options protocol open to anyone with a Metamask wallet and some Ethereum tokens. Hegic Options is an automated market maker (AMM) that offers bidirectional liquidity (calls and puts) for its options protocol, offering both WBTC and ETH solutions to write and buy these personalized options. The neat thing about Hegic is that it solves the liquidity issues that plague AMM Dexes by mitigating risk for options writers and spreading this risk out in bidirectional liquidity pools. This approach to risk management brings convenience to options buyers as they can now craft the customized options that they want to purchase. In summary, Hegic Options is a great solution for retail investors previously barred from the crypto derivatives market looking to participate in a lucrative solution.

Jacob Stelter | Blockchain Analyst