Proposal: Whitelist HEGIC, 500k BNT Co-Investment

Proposal to Whitelist HEGIC tokens

This proposal is expected to appear on Snapshot for voting on Monday 19, April 2021 at 12:00 pm UTC.

TL;DR

  • Proposal to whitelist HEGIC
  • Co-investment limit of 500,000 BNT

For: add HEGIC to Bancor whitelisted tokens

Against: do not add HEGIC to Bancor whitelisted tokens

The HEGIC ecosystem: On-chain options trading protocol on Ethereum

Project Website: https://www.hegic.co/
Project Documentation: https://ipfs.io/ipfs/QmWy8x6vEunH4gD2gWT4Bt4bBwWX2KAEUov46tCLvMRcME

Hegic is an on-chain peer-to-peer options trading protocol built on Ethereum.

The benefits to the DeFi ecosystem and its users are:

Holders: Trade WBTC & ETH call and put options. Non-custodial options with on-chain settlement. Choose any strike price, exercise at any moment.

Writers: Write WBTC or ETH call and put options.Provide liquidity and start earning yield on WBTC or ETH. Auto diversification of capital allocation.

Token Holders: Earn protocol’s fees in staking rewards. Receive liquidity mining & utilization rewards in HEGIC. Participate in staking and earn WBTC or ETH.

Hegic in Numbers

Hegic has achieved steady results in the second quarter since v888 beta launch. The protocol has surpassed the total amount of 3,200+ ETH options and 1,500+ WBTC options acquired (calls and puts combined) in the first six months after the launch. All these options contracts were bought by 1,368 unique users (options buyers).

10 Oct 2020 - 10 Apr 2021

Cumulative ETH Options - $150,011,713 ($3,725,533 fees generated)
Cumulative WBTC Options - $141,278,505 ($3,479,591 fees generated)
Total - $291,290,218 ($7,205,124 total fees generated)

Hegic TVL at moment of writing this report is sitting around ~ $61.2M

For detailed stats on Hegic, please visit: Token Terminal

Tokenomics

HEGIC Token
Token standard: ERC20

HEGIC token on Etherscan: $0.2023 | Hegic (HEGIC) Token Tracker | Etherscan

HEGIC Token Distribution: 3,012,009,888 HEGIC tokens (fixed total supply, not mintable)

  • 20% (602,402,000 HEGIC): Early Contributors
  • 10% (301,200,988 HEGIC): Hegic Development Fund
  • 40% (1,204,809,000 HEGIC): Liquidity M&U Rewards
  • 25% (753,001,000 HEGIC): Bonding Curve
  • 5% (150,596,900 HEGIC): Balancer Pool

Bonding Curve

The HEGIC token price increases as the supply of the token increases. When a new buyer has acquired the HEGIC token, each subsequent buyer will have to pay a slightly higher price for each token. As more people will discover Hegic protocol and buying continues, the value of each token gradually increases along the bonding curve.

Liquidity Mining & Utilization Rewards

The purpose of three Liquidity M&U Rewards phases is to let the users of the Hegic protocol to become its owners. Liquidity providers and options buyers vote with their wallets for the protocol. That is why they have to be able to influence its future and own a fraction of the protocol.

Community and Communication

Hegic is active on Twitter, Telegram, Discord, Github and Medium.

Twitter: https://twitter.com/HegicOptions
Telegram: Telegram: Contact @HegicOptions
Discord: https://discordapp.com/invite/znjdj8q
Github: Hegic · GitHub
Medium: Hegic – Medium
Defipulse: HEGIC | Stats, Charts and Guide | DeFi Pulse
Email: help@hegic.co

Available Audits

Hegic has been audited by PeckShield and the reports are available via the Hegic Github page:

Market and Trading Data

  • Hegic price at the time of writing is $0.2329.
  • All-time high: $0.642 (13 February 2021)
  • All-time low: $0.043 (21 September 2020)
  • Price 90 days ago: $0.270
  • 425,355,246 tokens in circulation
  • 3,012,009,888 maximum supply
  • The current market capitalization is $99,325,486
  • The Hegic token is available on major exchanges, including Binance, Gate.io, OKEx, BKEx, Hoo.com.
3 Likes

Hegic is an important project in the Option DeFi space and I think it will be a good fit into the Bancor ecosystem.

1 Like

This has my support for whitelisting (without LM rewards) but we should amend this proposal to also include a co-investment limit of 500K BNT. With BNT at $7.00 this should open up 3.5M in single sided liquidity for the HEGIC side and if the pool fills up completely then it will be 7M in depth.

The current DEXes with the largest pools are on uniswap and sushiswap and HEGIC is paired with ETH:

image

That’s roughly ~8M total in pool reserved combined. We should be able to compete with both of those pools with a 500K co-investment and we can also increase the limit depending on how quickly this pools fills up as a follow up proposal.

1 Like

It might be a tough call to whitelist with LM rewards straight out of the gate.

I refer you to the strategy used by MPH and AXS; getting the whitelist approved is extremely challenging, and requires a 40% quorum. The DAO is cautious and seems to prefer a modular approach:

  1. Whitelist, then
  2. propose co-investment increase, then
  3. propose LM rewards.

There is precedent for all three occurring together - ALPHA achieved this, for example. However, this is certainly the exception, not the rule.

That said, there is nothing wrong with proposing all three together. Just be aware that DAO members who disagree with the LM component, but are not opposed to whitelisting, are forced to take them together. The choice to whitelist without LM is valuable; it is easier to pass LM afterwards, as the quorum requirement is much lower.

3 Likes

Good call, I didn’t even see that this is also requesting LM rewards. This proposal will be tough to pass with LM rewards.

1 Like

Hegic is a valid and great project in the derivative market, so I have my full support to this proposal.

BTW, the founder of Hegic is also a legend. Pls refer to https://tinyurl.com/cryptoanonsense if you are interested in.

1 Like

I am cool with whitelisting and an initial co-investment but LM should be decided after that process goes through and we see the pool in action. Also changed the tittle to reflect the proposal but you should consider removing LM Rewards first if you want a better chance at hitting quorum for whitelisting.

1 Like

What say you, @jacob.dc?

You want to risk piling it all together, or do you want to split it up?

Great post. I agree with the comments about removing LM rewards from the initial proposal.

1 Like

Thank you all for the inputs - great community! I will split the process and remove the LM rewards. Cheers

1 Like