Borrow USDC, buy protection, earn $ARB 🎁
We're announcing a collab with @NoRektFi to promote the use of American options as a loan hedging tool.
Now you can try out the innovative lending protocol for free, with the protection costs covered by the HDF-granted incentives.
👇
Borrow with protection and get paid for it.
Borrow against $ETH without the risk of being liquidated. Use stables to farm a new pool or do whatever you want.
Maximize your borrowing without liquidations.
In your opinion, is it acceptable for a DeFi protocol to rely on off-chain solutions for a significant part of its critical infrastructure (such as order books, pricing, or settlement, in the case of options)?
38%Yes, UX > principles
62%No, it's not DeFi anymore
16 votes • Final results5 days left to stake $HEGIC in the upcoming epoch ⏳
Instead of holding your tokens in a falling market, you can provide them into the Stake & Cover Pool and participate in PnL distribution.
Act wisely → hegic.co/app#/arbitrum/stake…
One more astonishing project based on Hegic options just released!
🔮Option-Hedged Lending
🛡️@NoRektFi
Welcome to the new DeFi era where the hedge is an integral part of the loan, the risk is clearly priced, and liquidations are no longer mandatory.
Just wow.
gm, @NoRektFi is live.
@NoRektFi lets you lower the liquidation price of an $ETH-backed loan for a selected period.
Example: Your current liquidation price is $1,500.
You want it reduced to $1,000 for the next 30 days.
▸ Choose $1,000.
▸ Choose 30 days.
NoRekt calculates the hedge and buys the required put from @HegicOptions.
As ETH falls, the put gains value and helps keep your position healthy.
No strikes. No option amounts. No hedge calculations.
Choose your risk. @NoRektFi handles the options.
The current Put/Call Ratio on Hegic is 0.666 😈
It seems traders believe in a market recovery...
How about you?
54%🟢 It's time to get back
46%🔴 Let's keep falling
13 votes • Final resultsThanks for mentioning us in a historical context!
We believe there's an alternate path for onchain options that doesn't rely on centralized oracles, private chains, or institutional liquidity.
It remains to be seen whether this path is viable, but we continue to build toward it.
The Renaissance of Onchain Options
Mapping the expansion of options as a trading instrument and the volatility that prices them
Co-authored with @BlockScholes
Read the free report here: docsend.com/v/sjv2g/onchaino…
🌟 A wonderful example of a product built on top of Hegic:
hegress.com/ by @Parad0xPrince
Hegress is the secondary market for Hegic options, and here is the short description 👇
With Hegress, you can sell your out-of-the-money options instead of waiting for them to expire worthless (min. option size = 1 ETH or 0.1 BTC).
If you’re looking to earn yield instead, you can also provide liquidity to the Hegress pool.
Bonus feature:
🎉 No additional fees!
Here is the sign from above to incorporate options into your DEX / lending / whatever-you-build 👇
Building index-tracking assets on top of options instead of debt
ethresear.ch/t/building-inde…
What if the use options as the base of defi, instead of CDPs and liquidations? So instead of extreme price movements creating a sharp and global "you get liquidated" effect, instead your exposure to the index diverges quadratically from your preferred exposure in a smoother way?
A key benefit is getting rid of the need for instant oracles, and instead making everything work on top of "slow oracles" (ie. the type that prediction markets use)
This design has a significant downside - the need to do regular rebalancing - and an open question of whether and how this rebalancing can be made slippage-resistant enough. But it's worth considering and trying IMO. I would feel much safer holding algostables inside something like this, than in something that depends on an oracle that has to give real-time answers (and therefore could be tricked into giving wrong real-time answers with no time for human recourse).
