Hedgey takes traditional financial options markets and applies them to the decentralized financial space. This means every single option is executed fully on a non-custodial and peer-to-peer (P2P) network. Hedgey was designed to mirror the actual mechanics of traditional options trading of American style options for all of the major benefits and more that traditional finance has appreciated for years.
American Style: Options can be exercised at any time before the expiration
Market Style: No initial liquidity pools required to create a market. Users are strictly entering a peer to peer contractual relationship without an intermediary.
Order Book: Each user can self define what they are willing to pay or accept in exchange for buying and selling contracts
Collateralized: 100% collateralized for options writers, and premium collateralized for options buyers.
Exercisable: The owner of an option may physically execute and option and purchase the asset or sell the asset to the writer (even if its not Spot>strike). If the option is in the money (Spot>strike) the asset can be exercised physically or without owning the asset using a cash-light option.
Cash-Light Closable: When an option is in a profitable position (Spot>Strike), the owner may exercise an option by taking profit on a position with the owner receiving the owed amount.
Re-sellable: Purchased options can be resold with new premiums
Expiring: Options are given an expiration date (in block time) before the contract is determined voided.
Upfront Premium delivery: Premiums are paid to option writers up front as soon as they are purchased. Secondary sellers are paid upfront when their resold options are purchased.
No Liquidity requirements: There are no up front liquidity amounts required to create a market or sell an option.
Pricing oracles: Hedgey is dynamically linked via smart contract to a dedicated AMM for every network. (Ex. Uniswap v2 for Ethereum). In instances where pairs have no price oracle, only physical deliver is available.
Options can be launched on any token through Hedgey. Unlike other DeFi option platforms, Hedgey does not need any (protocol launched) liquidity pools. This means every token can get a fully-fledged option marketplace. This also means Hedgey is scalable as it grows.
Anyone can launch options markets on Hedgey, from project founder to community member. Once a market is created, it exists forever on the protocol. The ability to self-launch markets allows the protocol to grow organically as communities expand their trading tools and integrate options trading.
Hedgey is not limited to one blockchain network but instead lives on five. This lets options be accessible to a wide range of crypto users. On all these networks, anyone can launch options for their token.
Hedgey taps into the liquidity of five Automated Money Makers (AMMs) like Uniswap and PancakeSwap on five different blockchain networks to enable flash swaps for cash closing. With flash swaps, Hedgey can automatically convert the underlying asset amount of an option to return the profits to the option buyer and the remaining amount to the option writer, when the option is cash closed.
Instead of requiring users to own the capital to buy or sell the underlying asset amount of an option, Hedgey lets every trader cash close their options to only receive the profit of their trade instead of the full underlying asset amount. In simple terms, Hedgey lets anyone trade like a whale regardless of their portfolio size.
Hedgey gives DeFi the same exercisable options CeFi has had for decades in a friendly UX package. The industry-leading UI lets anyone understand and trade options. By leveraging flash swaps to enable cash closing, small traders can perform big trades without needing the capital to exercise them
Teams.hedgey.finance (coming soon)
Moonshots.hedgey.finance (coming soon)
Hedgey will launch Software Development Kits (SDKs) to let any project integrate the Hedgey protocol into their own apps. This means Hedgey will be able to live in any app on any device. that center around a goal of building a protocol, open SDK's, and creating self-created markets that can hopefully give us infinitely scalable volume without having to lift a finger.
Hedgey will launch open API with endpoints that site like CoinGecko and CoinMarketCap to launch options as a new market type and let Hedgey be seen as an exchange type. Furthermore, the open APIs will let any other developer launch beautiful analytics pages and other type of platforms using Hedgey's data.