Hedget AMA Recap
CryptoDiffer team
Hello, everyone!š
We are glad to meet hereĀ
Co-founder of Hedget (@sergelubkin)
Co-founder of Hedget (@malcolmlerider)
Co-Founder of Hedget, Malcom Lerider
Hi everyone!
Co-Founder of Hedget, Serge Lubkin
Hey people!
CryptoDiffer team
Can you introduce yourself to our community?
Co-Founder of Hedget, Malcom Lerider
Hi everyone, Iām Malcolm, co-founder of Hedget. I ran the R&D at NEO back in 2017 and worked on global blockchain projects at PwC. I have been doing business development and community building at Chromia after I left PwC, as I see Chromia being the most flexible and usable blockchain from its R&D and business perspectives. We now have a very exciting project to prove what Chromia actually can do, and itās called Hedget!
Co-Founder of Hedget, Serge Lubkin
My name is Serge Lubkin. I was Chromia marketing lead during IEO and further exchanges listing. I built relations with communities and influencers. I’m MSc in Economics, but all my life, I’ve been doing marketing for various projects. Also, I’m an experienced derivatives trader, traded a lot on BitMEX/Binance/Deribit, mostly perpetual swaps and futures, and also options. Now, I am a co-founding Hedget with Malcolm.
CryptoDiffer team
We will ask now five intro questions from CryptoDiffer team and once you answer them, we will open the chat to collect questions from community!
Q1: What is Hedget?
Co-Founder of Hedget, Malcom Lerider
Hedget is a āGadget for Hedging,ā a platform for P2P decentralized options. You pay the smallest possible premium to secure your positions against unexpected price movements, seeing what we did the last few days, itās pretty nice to have products like that.
In an industry where many take advantage of āgambling behaviorā, we want to offer the exact opposite ā a possibility to remove risk in a decentralized manner. So our values are aligned around eliminating risk in crypto. Itās like basic insurance for very volatile crypto markets.
CryptoDiffer team
Q2: What is the purpose of the HGET token?
Co-Founder of Hedget, Serge Lubkin
The HGET token is a native utility and governance token of the Hedget platform. It will be issued on the Ethereum network as an ERC-20 contract and will have representation on a Chromia sidechain.
Firstly, HGET will serve as a governance token of the HGET DAO.Ā In the preliminary stages, the DAO will vote on default assets, options parameters and UI improvements.
As the platform is further developed, HGET tokens will also be used to determine transaction fees, reserve requirements, and general functions and features of the platform.
Secondly, it will be used to prevent spamming of orders which can lead to API overloads and order book manipulation. HGET tokens will need to be staked to interact with the platform.Ā Staking requirements will increase as the monetary value and frequency of a user’s interactions increase.
Lastly, the HGET token will be used as a security measure and reputation engine in the future when margined options are implemented. Options writers who wish to offer options without providing 1:1 collateral will need to stake HGET tokens which will be used to purchase fully collateralized options as a hedge.Ā This mechanism ensures end users cannot be adversely affected by the insolvency of an options writer.Ā Options writers who do not stake an adequate supply of HGET for this purpose will be given a poor rating, allowing front end users to choose a different writer. In extreme cases, writers with very low ratings will not be shown in the Hedget UI at all.
CryptoDiffer team
Q3: What makes Hedget stand out and be different from similar projects?
Co-Founder of Hedget, Malcom Lerider
UI and usability in general. It will be like a centralized exchange with all properties of decentralized exchang, you control your funds, relying ultimately only on Ethereum smart contract. It is also open source and transparent. Best from both worlds.
CryptoDiffer team
Q4: How do you attract new users to your platform?
Co-Founder of Hedget, Serge Lubkin
Thereās not much decentralized option trading platforms right now, migrating from Centralized one is an obvious choice – you control your assets. Also we will have liquidity miningĀ algorithm and cheapest commissions on the market
CryptoDiffer team
Q5: How does Hedget solve the problems facing exchanges: system overload, lack of liquidity, hacker attacks?
Co-Founder of Hedget, Malcom Lerider
System overload – by HGET staking, unnecessary overload, or spam orders, will make theĀ liquidate the stake. Lack of liquidity – by liquidity mining. Hacker attacks are more difficult if there is no ultimate point of failure, but of course, we will have additional audits and security reports. Ultimately you canāt hack exchange if users control their funds independently by their private keys.
CryptoDiffer team
Awesome, a lot of updates to come out!
Thank you for great answers!
I think it is time to start community questions round!
Cryptodiffer Community
Why will the Hedget Foundation use CHR token in a public sale of HGET? What is the reason for this?
Co-Founder of Hedget, Serge Lubkin
The Hedget protocol is built on top of Chromia and is incubated via Chromia team. we need CHR reserves for paying for hosting on top of Chromia blockchain as well as for the future integration with Chromia ecosystem. We also are strong believers in Chromia and we want support it in different ways.
Cryptodiffer Community
Does managing both Hedget and Chromia make it difficult for you to run 2 projects?
Co-Founder of Hedget, Malcom Lerider
Hedget is branching off with independent management, so we will have our full focus on this project. We will assist Chromia whenever needed, but we will not have any active duties there. So to summary, we will run only one project, while occasionally assisting the other one.
It’s a mutual relationship, Chromia is incubating Hedget to get us a good launch, and of course we will return the favors whenever we can.
Cryptodiffer Community
What are the benefits when I hold HEDGET?
Co-Founder of Hedget, Malcom Lerider
Token will be needed to be staked for writing options. It can also be staked to participate in governance. Furthermore, taker fee will likely require HGET token
Cryptodiffer Community
What your plans in place for global expansion, are focusing on only market at this time? Or focus on building and developing or getting customers and users, or partnerships? Can you explain this?
Co-Founder of Hedget, Malcom Lerider
Without going too much into detail, we are focusing on liquidity. It’s a self-feeding mechanism; liquidity brings even more liquidity, as this is what users need. We have a few approaches in parallell to onboard the liquidity we need
Cryptodiffer Community
Hedget is built on top of Ethereum and Chromia, it also designed to be the option trading platform for DeFi. My #question is: There have so many such DeFi platform exist and offer only ETH as default collateral, which causes problem if ETh price fluctuate. How Hedget solve this problem? (if solution is paying premium as you said, how premium will determine?)
Co-Founder of Hedget, Serge Lubkin
To operate on Hedget platform you will need to have HGET token, but your underlying can be any erc20 asset accepted on Hedget
Cryptodiffer Community
What do you think is holding the DeFi space back? What is preventing the mass adoption of DeFi products?
As a DeFi influencer, what do you think of this problem with DeFi: Most people are gettin into DeFi for profits rather than improving current system just like with ICOās, any solutions to improve this?
Co-Founder of Hedget, Malcom Lerider
It’s just early, DeFi need time to develop. We still see frequent security breaches, which is an indication on that the market and technology need time to mature. We are of course part of this process, to offer a platform better suited for decentralized option trading
Cryptodiffer Community
Q1. Can you discuss how the tokens from the liquidity mining are going to be released?
Q2. Do you have an MVP in mind before the sale?
Co-Founder of Hedget, Serge Lubkin
1. It will be released slowly depending on the real trading volume on the platform, option writers will receive rebates from the pool for each order taken
2. Yes, the token will have utility purposes before itās generated
Cryptodiffer Community
Hedget partnered with Chromia to bring DeFi . But how does decentralized options trading works ?
How would it help the Chromia ecosystem to scale?
Co-Founder of Hedget, Malcom Lerider
We provide the protocol, let’s call it platform, to write and trade options. The actual option writing is done by users, so it’s completely peer-to-peer.
We choose Chromia because of the technical advantages and flexibility in developing complex features. In terms of helping Chromia ecosystem to scale, we can hopefully be a good example on the incredible things that is possible to develop on top of Chromia.
Cryptodiffer Community
Whether hedget and chormia networks are the same is theĀ child hedget of the chormia network if not explain if yes please explain
Co-Founder of Hedget, Serge Lubkin
Hedget based on Chromia sidechain connected to Ethereum chain as L2
Cryptodiffer Community
So it’s only useful for traders, right? I think It can be a disadvantage to make HEDGET more and more popular?
Co-Founder of Hedget, Malcom Lerider
Not at all, option can have long expiry date. If there is anyone who would say that they have “too much money in crypto”, then having options as a way to secure against unexpected price movements could be quite wise
Cryptodiffer Community
Hedget is seems ideal project in cryptomarket. Specially, these days many DeFi project are comming out and attracting many investors’ attention. But it looks very risky because price volatility is very high even more than just normal crytomarket.Ā And there are also some scammy projects are exsist such as Yam, YFFI and ASUKA.Ā How will Hedget will improve those riskey image about DeFi and crypto market?
Co-Founder of Hedget, Serge Lubkin
First of all, DYOR, every time. Hedget goal is to help hedging major assets like ETH, Link or BTC via WBTC, for example. but in future we will have more and more assets to hedge, so if you see options on some asset on Hedget it will be a good sign that liquidity provider took that risk and wrote the option on that asset and depending on the price of that option you will be able to value that asset overall risk level.
I bet options onĀ YAM/YFI and alike will be extremely expensive:D
Cryptodiffer Community
Due to LEVERAGE TRADING, lots of dollars keep getting liquidated, so how can HEDGET be of solutions to usĀ on multiple exchanges, would you have an API Which can be linked to my exchanges
Explain more about your partnership with CHROMIA, how Does this Enable Chromia to launch fully into the DeFi space and how do you deal with the The Chromia Relational Blockchain and RELL programming
Co-Founder of Hedget, Malcom Lerider
Yes, Chromia actually makes is super easy to create API’s, so we aim to offer solutions to allow users to buy options from Hedget platform, but directly integrated in exchanges
Leverage trading and lending protocols are two areas where we want to build strong partnerships
Cryptodiffer Community
Q: Can you share about the niche market, and target markets and the broader market that HGET aims to?
Q: How will you continue to promote your product in the future? Do you already have plans for other interfaces with other companies ?
Co-Founder of Hedget, Serge Lubkin
So we identified such niches for our first implementation:
1. Derivative trading: both for hedging and general speculation (we believe options are much better tools than highly levered swaps)
2. Hedging for DeFi protocols: decentralised lending and leverage
3. Hedging profits for minersĀ
Second question: variety of promotions, partnerships, integration referral program and a lot more
Cryptodiffer Community
What’s are the Revolutionary feature you use to Prevent Liquidation and ensure Proper HEDGING safety of Our FUNDS
Co-Founder of Hedget, Malcom Lerider
Not revolutionary from technical perspective, but Hedget do require 100% collateral when writing options. There is thus no counter-party risk
Cryptodiffer Community
I am a professional hacker in the internet network.Ā Projects around the world can still make mistakes, so what makes #Hedget sure it won’t be?Ā #Hedget is there an exchange that pays rewards for 1 hacker?Ā What is safe mode for users?
Co-Founder of Hedget, Malcom Lerider
Hedget will have independent security audits which does help, even though it is not 100% fool proof. Hackers are valuable community members, especially when they follow responsible disclosure, and all such reports should be rewarded
Cryptodiffer Community
What are the requirements to participate in the public sale of HGET?
Co-Founder of Hedget, Serge Lubkin
1. instal metamaskĀ
2. Read auction mechanics (will be published on our blog today – subscribe to our channel not to miss it – https://t.me/hedgetofficial)
3. Deposit funds
4. Get token only if you are going to use itĀ
DM if you have additional questions
Cryptodiffer Community
What is your core product? What is your vision and direction for the future?
Co-Founder of Hedget, Malcom Lerider
Becoming the market leading platform for decentralized option is our first goal. We have our eyes on additional defi instruments to follow up with after that; Chromia gives us much flexibility from development perspective
Cryptodiffer Community
What is your strategy for attracting more new users in the DeFi world, is your platform suitable for beginners or advanced crypto user?
Co-Founder of Hedget, Serge Lubkin
It will be suitable for both beginners and veterans.Ā
We are planning to educate community via different videos, instructions, easy digestible guides
Cryptodiffer Community
How does Hedget incentivize liquidity in the market, do you have in house market makers to ensure liquidity provides?
Co-Founder of Hedget, Malcom Lerider
Hedget has a very generous liquidity mining pool. In fact, 50% of token supply goes to market makers. It’s a good foundation, and we will build partnerships on top of that
Cryptodiffer Community
Do you plan to implement staking function to $HGET tokens?
Co-Founder of Hedget, Malcom Lerider
Yes, staking will be required both for writing options and for participating in governance
Cryptodiffer Community
What form of risk control mechanisms does Hedget offer to protect speculators from major losses in derivatives or options?
Co-Founder of Hedget, Serge Lubkin
1. Full collateralization for the first stage
2. HGET staking plus embedded liquidity control mechanisms for the second stage
Co-Founder of Hedget, Serge Lubkin
Thank you for having us!
Great AMA! See you soon!
Website: https://www.hedget.comĀ
Twitter: https://twitter.com/Team_Hedget/Ā
Telegram: https://t.me/hedgetchat
Medium Blog: https://medium.com/@hedget
Hedget Whitepaper: https://hedget.com/whitepaper.html
Pls join our community!
Cryptodiffer TEAM
Thank you for you answers, it was an insighfull session
Thank you everyone who participated, great questions as always!
