What Can You Do With Hegic

Buy call and put options for profits or to hedge your positions. Sell call and put options as one of the liquidity providers and earn yield. Enjoy non-custodial options trading. Make magic with Hegic.

Buy ETH Call Options

An ETH call option is option contract giving the owner the right to buy a specified amount of ETH at a fixed price within a certain time.

For example, a single ETH call option contract may give a holder the right to buy 1 ETH at $150 up until the expiry date in four weeks. If they paid $10 for this right and during the period of holding the price of ETH, say, rises to $200, a holder can excercise their contract (buy 1 ETH at $150) and earn $40 in net profits.

  • Potential Profit: Unlimited as the level of ETH increases

  • Potential Loss: Limited to premium paid for ETH call option contract

Learn more about call options from the "What is a Call Option?" section that can be found in the Learn Options Basics part of this educational document.

Buy ETH Put Options

An ETH put option is option contract giving the owner the right to sell a specified amount of ETH at a fixed price within a certain time.

For example, a single ETH put option contract may give a holder the right to sell 1 ETH at $150 up until the expiry date in four weeks. If they paid $10 for this right and during the period of holding the price of ETH, say, falls to $100, a holder can excercise their contract (sell 1 ETH at $150) and earn $40 in net profits.

  • Potential Profit: Substantial and increases as the level of ETH decreases

  • Potential Loss: Limited to premium paid for ETH put option contract

Learn more about call options from the "What is a Put Option?" section that can be found in the Learn Options Basics part of this educational document.

Sell Call Options and Earn ETH

Provide ETH to the liquidity pool and start earning up to 29.25% APY (est.). Your ETH alongside with ETH provided by other LPs will be used for selling call options.

Call options buyers will be paying premiums in ETH for the right to buy ETH at the liqudity pool at a fixed price during a certain period. Premiums are distributed among all of the liquidity providers according to their share in the pool. After providing ETH to the pool, a LP receives writeETH tokens (ERC20) that can be converted back into ETH in case they want to leave the pool.

Sell Put Options and Earn DAI

Provide DAI to the liquidity pool and start earning up to 29.25% APY (est.). Your DAI alongside with DAI provided by other LPs will be used for selling put options.

Put options buyers will be paying premiums in DAI for the right to sell their ETH to the liqudity pool at a fixed price during a certain period. Premiums are distributed among all of the liquidity providers according to their share in the pool. After providing DAI to the pool, a LP receives writeDAI tokens (ERC20) that can be converted back into DAI in case they want to leave the pool.

‚Äč