Article Summary, Automatically Generated By AI
About Hedget
Key Points:
- Launched in September 2020, Hedget is a decentralized and non-custodial cryptocurrency options protocol.
- Hedget has strategic investors and partners including Chromia, FTX/Alameda Research, Orion Protocol, NGC Ventures, and FBG Capital.
- The Hedget team aims to develop global decentralized options markets for DeFi platforms and lenders.
- Hedget has implementations on Binance Smart Chain and Ethereum, with Chromia as a Layer 2 enhancement.
- The long-term vision is to establish a DAO to govern the platform.
HGET Token:
- HGET is the native utility and governance token of
About Hedget: Empowering Institutional Investors in the Digital Asset Space
Introducing Hedget (HGET): A Revolutionary Cryptocurrency
Launched in September 2020, Hedget is a pioneering decentralized and non-custodial cryptocurrency options protocol, boasting an impressive roster of strategic investors and partners, including esteemed entities such as Chromia, FTX/Alameda Research, Orion Protocol, NGC Ventures, and FBG Capital.
The Hedget team envisions the evolution of global decentralized options markets as the natural progression for DeFi platforms and lenders. By enabling the hedging of volatility in both directions, these platforms, as well as individual users, will be empowered to safeguard themselves against liquidation and insolvency. Furthermore, Hedget options can also serve as a straightforward trading instrument, allowing users to capitalize on market price fluctuations.
The team has prioritized the strategic utilization of multiple blockchain capabilities. Notably, Hedget has developed implementations on both Binance Smart Chain and Ethereum, with a separate deployment on the latter. Furthermore, Chromia is being integrated as a Layer 2 enhancement to augment the Ethereum platform.
The Hedget foundation envisions a long-term trajectory, wherein it will spearhead the development and stewardship of the platform over the forthcoming years, ultimately culminating in the establishment of a decentralized autonomous organization (DAO) that will oversee and regulate the platform’s governing principles and operational mechanics.
The Hedget Token (HGET) serves as the native utility and governance token of the Hedget platform, issued on the Ethereum network as an ERC-20 contract, with additional representations on a Chromia sidechain and Binance Smart Chain.
HGET assumes the pivotal role of governance token within the Hedget platform. Token holders are empowered to cast their votes, either directly on the blockchain or via the intuitive UI at https://hedget.com/proposals/, to shape the platform’s evolution by deciding on the integration of new assets, default options parameters, and UI enhancements.
A Testnet platform, accessible at
https://hedget.com/demo/
and hosted on the Chromia testnet, is available for users who stake HGET tokens to gain access. On this demo site, users engage in trading activities using testnet tokens devoid of real value. However, the top-performing traders will be automatically rewarded with real HGET tokens by the Hedget protocol upon the mainnet release on the Chromia blockchain, slated for Q1 2021.
The HGET token will serve as a multifaceted utility token on the platform, facilitating various interactions. To engage with the platform, users will be required to stake HGET tokens, and all trading commissions on Hedget will be denominated in HGET. Furthermore, HGET tokens will play a crucial role in preventing spamming of orders, which can lead to API overloads and order book manipulation. Notably, staking requirements will escalate in tandem with the monetary value and frequency of a user’s interactions, ensuring a robust and secure platform.
In the future, the HGET token will also serve as a security safeguard and reputation engine when margined options are introduced. Options writers seeking to offer options without providing 1:1 collateral will be required to stake HGET tokens, which will be utilized to purchase fully collateralized options as a hedge against capital insufficiency risk. This mechanism guarantees that end users are protected from the adverse consequences of an options writer’s insolvency.
As the platform continues to evolve, a decentralized autonomous organization (DAO) will be instituted, wherein HGET tokens will serve as the determinant for transaction fees, reserve requirements, and the overall governance of the platform’s functionalities and features.
The Hedget Protocol’s Fee Structure:
- A taker fee of 0.04% of the underlying asset will be levied.
- A maker fee of 0.02% of the underlying asset will be applied.
- The 0.02% differential between taker and maker fees will be allocated to a special reserve, which will remain locked until the establishment of a decentralized autonomous organization (DAO), at which point the DAO will dictate the utilization of these funds.
- A settlement fee of 0.02% plus Ethereum fees (if settled on the Ethereum network) will be borne by the option buyer.
- During the initial 3-4 year period, this 0.02% settlement fee will be subsidized by the system from the liquidity mining pool, thereby incentivizing option writers and reducing the overall fees incurred by the option buyer.
HGET Token Circulation:
The total supply of HGET tokens is capped at 1 billion, with a circulating supply of 300 million tokens.
The protocol boasts a capped maximum token supply of 10,000,000 HGET, thereby ensuring a scarce and coveted digital asset.
A total of 1,717,170 tokens were generated during the Token Generation Event (TGE), subsequently allocated among private and public sale participants, as well as the project team, in strict adherence to the guidelines outlined in the Whitepaper.
A total of 88,888 ERC20 HGET tokens were ceremoniously burned on the Ethereum Mainnet, with a subsequent issuance slated for January 2021 on Binance Smart Chain.
The remaining tokens will be incrementally released in accordance with the roadmap outlined in the Whitepaper. The lion’s share of these tokens will be allocated through a Liquidity Mining Program, which incentivizes both market makers and users of the Hedget protocol, fostering a synergistic relationship between the two.