Hegic is back with a bang. Demand for the protocol, which temporarily suspended activity after a bug earlier this year, is soaring as its partnership with Yearn Finance’s rockstar founder compounds with increasing demand for trading protection.
The HEGIC governance token has more than doubled over the past 30 days, after founder Molly Wintermut and Yearn’s Andre Cronje announced a partnership. Hegic has 1,395 WBTC ($21M) and 38,761 ($17.5M) in available liquidity with $6M worth of WBTC deposited into the non-custodial options protocol last week, another sign of climbing interest
The protocol allows anyone to purchase options on WBTC and ETH using DAI as settlement, giving DeFi traders a means of hedging risk against market volatility while underwriters stand to earn a profit from writing puts and calls.
Yearn strategies will use Hegic to gain additional exposure to stablecoins to protect against downside risk and leverage binary options.
This would allow forthcoming Yearn V2 vaults to capture more yield while remaining market neutral, with the added protection against market volatility thanks to put and calls. More on the collaboration is detailed in this article.
The Molly & Andre Fund
Outside of Hegic Binary options, Molly and Andre are teaming up to fund developers through a new collaboration called M&A.
Announcing M&A (Molly & Andre):@mollyandandre is a #DeFi fund created by Molly Wintermute @0mllwntrmt3 and Andre Cronje @AndreCronjeTech. Today we are starting to invest in hardcore developers and code. $3M will be allocated in the M&A from the Hegic Development Fund.— 0MOLLY WINTERMUT3 (@0mllwntrmt3) November 9, 2020
☯️ 1/8: pic.twitter.com/yXX5suXb1S
“$3M will be allocated in the M&A by Hegic Development Fund.” stated a tweet from Molly.
The fund plans to contribute $50K – $200K per project alongside code reviews. It also features a big disclaimer that “Andre Cronje isn’t involved in any financial operations/transactions conducted by the @mollyandandre fund and doesn’t have money in it.”
Overall, Hegic’s positioning as the largest DeFi options protocol with a native governance token has rallied strong community sentiment, setting it up to capture a high degree of interest in the wake of DeFi’s rebound.