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Author: Admin | 2025-04-27
Initial reaction included a full repayment to LPs whose funds were stolen by the attacker. While Opyn’s response to the incident was resilient, one must always be cautious when interacting with nascent smart contracts.Hegic OptionsAnother options trading protocol, Hegic, aims to make options trading simpler by abstracting complexities and make it more accessible.Hegic’s options aren’t structured exactly like traditional options but have several similarities. All contracts on the protocol are American style, meaning they can be exercised at any time.Upon launch, Hegic was immediately put under pressure as a bug in the code froze 152 ETH worth of LP funds forever.Shortly after, Hegic was hit by an exploit that allowed option sellers to collect their premium and exit the pool, thereby evading their obligations upon expiry of the options. Once again, Hegic was forced offline and redeployed its smart contract.But Hegic has bounced back time after time with significant improvements to the protocol. The protocol’s anonymous developer, Molly Wintermute, uses the yEarn Finance approach of testing live on mainnet.Further, Hegic fully reimbursed liquidity providers and option holders that lost money on the two bugs.Source: HegicLike Opyn, one can buy or sell options. But Hegic uses a common liquidity pool for both calls and puts.This is the biggest difference between Hegic and other platforms, as option sellers need not have specific exposure to specific strike prices and expiry dates. Hegic’s approach helps consolidate risks and returns, putting all liquidity providers on equal standing.Source: HegicHegic provides LPs with annualized yields of 20% on the DAI pool and 25% on the ETH pool at the time of writing. The DAI pool’s yield opportunities come from selling puts, while the ETH pool caters to selling calls.Since Hegic uses Americans style options, the premium is slightly higher than Opyn and Deribit. This is good news for LPs (higher returns) and option buyers (more flexibility).In September, Hegic will launch its native governance token with a liquidity mining program. Users will be given an added incentive in HEGIC to provide liquidity and buy options.40% of the total distribution will be given to users of the protocol, while an additional 25% will be sold using a bonding curve contract. Using a bonding curve to sell HEGIC ensures each time the token is bought, the price of the token rises a little bit. The bidding begins at $0.0027 per HEGIC.ACO FinanceBuilt on Auctus, ACO Finance is another non-custodial options trading protocol built on Ethereum.ACO uses European style options and, like Opyn, has close price parity with Deribit. However, ACO has call and put options for all the assets it supports, making it a more complete version of Opyn though a less liquid alternative.Source: ACO FinanceLike traditional options, ACO uses
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