Chromia launches DeFi protocol for options trading
Project Hedget — a decentralized finance (DeFi) protocol for options trading has already raised $500,000 in funding
Project Hedget is designed to add more functionality to DeFi’s (decentralised finance) ecosystem by providing new ways to trade options.
Chromia, the company behind the project, considers options an essential building block for the world of DeFi as demand increases. It raised $500,000 in a recent funding round, led by FBG Capital and NGC Ventures.
The protocol will allow investors to trade and create options in the chain by using collateral — enabling them to hedge price fluctuations and risk in their collateralised lending positions.
Hedget is an Ethereum layer-2 (L2) solution that has its core options platform running as an L2 running in Chromia to provide increased flexibility to developers for creating complex options architectures.
Hedget is an alternative to congested Ethereum protocols
With Ethereum’s congestion on the rise, resulting in gas prices passing from 10 GWei to 70 GWei in just three months, an alternative to DeFi protocols built only on the Ethereum blockchain is needed.
Crypto leaders, such as Ethereum’s Co-Founder, Vitalik Buterin, have called for changes to the network to prevent the high frees from becoming a security and adoption concern, with the proposed changes ranging from a change in the way gas prices work, to the use of L2 solutions.
These may be some of the reasons behind Hedget’s allocation of settlements to the Ethereum chain, while performing transactions on the Chromia Network can minimize costs while also providing similar benefits.
What can users expect?
Hedget will be powered by the native utility and governance HGET token that will be issued as an ERC-20 contract on the Ethereum Network that will also have representation in a Chromia sidechain.
The Hedget Project will use Chromias’ CHR token in a public sale in an attempt to prevent interference from buyers, as CHR staking will be needed to participate in the auction.
HGET will have the function of governing the HGET DAO to fund different processes, such as setting up transaction fees and assets reserves, as well as preventing the spamming of orders that cause API overloads in other protocols and allow order book manipulation.
The development team will be led by Malcolm Lerider who will be the CEO of the Hedget Foundation. Mr Lerider has ample experience in similar projects, such as Senior R&D manager with NEO.