In traditional finance, one of the most important pieces of derivative products can be mentioned is options. Continuing on with our #DeFi options series, we will be sharing about #HEGIC, the top #options protocol by market cap.  

A simple option is a contract that allows a holder to exercise a call or put option at a predetermined price in the future with the main purpose of minimising the risk (hedging) or speculation.  

Hegic is a peer-to-pool option trading protocol that allows users to trade in options in a decentralised way.  

Hegic works quite simply with the participation of two components, writers and buyers:  

Buyers: who need to call or put option on Hegic. Buyers can customise parameters of Options such as expiry date, strike price.  

Writers: Who sell call or put options to make a premium and to become a writer on Hegic users simply need to provide liquidity to the Hegic Pool.