Hedget -Cryptoverse AMA
Date — 1 September 2020
Guest : Serge Lubkin — CMO
Q: Please briefly introduce yourself and #Hedget to our community?
A: 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.
Hedget is a “Gadget for Hedging,” 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, it’s pretty nice to have products like that.
In an industry where many take advantage of “gambling behavior”, we want to offer the exact opposite — a possibility to remove risk in a decentralized manner. So our values are aligned around eliminating risk in crypto. It’s like basic insurance for very volatile crypto markets.
Q: What are your thoughts about DeFi and what is the contribution of Hedget platform for its growth?
What do you visualize as the role of Hedget in the future of finance?
A:1. DeFi is a new and interesting universe. The problem we see is highly leveraged trading and extreme volatility, so market crashes are inevitable as well as small but powerful flash crashes along the way. we want our option protocol to mitigate future risks for DeFi users.
2. We believe that the crypto options market will have a similar boom as leveraged trading had a few years back. BitMex rode the wave, did it well, and became market leaders. If we are right about options markets starting to boost, then we are going to grab this opportunity as early participants to become market leaders.
Q: In the case of using Chromia as L2, what problem will it solve of Ethereum? What happens when the contracts for sale are not fulfilled?
How does Hedget apply Chromia Layer 2 to works in a completely decentralized manner?
A: While Hedget uses Ethereum as base layer for collateral, options will be written and traded on Chromia as a layer 2 solution. Chromia is “relational blockchain” — a relational database wrapped in blockchain. So any advanced applications that you normally would build in centralized manner can be built just as easy on Chromia. It gives us flexibility in the type of defi products that we can launch on the platform. If the option contract is not settled funds just return to the writer. We are using Chromia in a way that is transparent and decentralised and hosted on Chromia blockchain, in future updates we will make all txs on Chromia verifiable on Ethereum.
Q: As an investor, I’m eager to know that after Hedget does the Convergence Auction, what steps will be taken in the future?
A: we are planning integrations with various DEXes and also CEXes, we will build robust API so funds will be able to use Hedget.
In terms of listings of HGET tokens we are working on a wide range of partnerships with different exchanges.
Q: Partnering up with Alameda Research was definitely an icing on top. What can we expect from this marvelous partnership?
What areas of the project do you think will be most affected?
A: Alameda Research is helping us in various ways. We are having IEO on FTX exchange as a result of such cooperation. They also introduced us to a wide range of communities around the Globe. We are excited and looking forward for our future cooperation with this amazing fund.
Q: What technological benefits does the Chromia blockchain offer for Hedget’s long-term success?
A: Flexibility. Chromia is in simple terms a relational database wrapped in a blockchain. All benefits of blockchain, with the possibility to develop as complex applications as centralized ones.
Also we don’t pay ANY tx fees to Chromia blockchain (we just rent “space” there). Also simple UI and robust API from the box.
Q: Is Hedget the only decentralised platform for options trading? If yes, how was this achieved?. If no, how is it different from other decentralised platforms for options trading?
A: Great questions. Hedget is not the only decentralized platform of course, there are about 10 platforms already. But Hedget is the only decentralized option trading platform with fixed fee schedule (as on centralized exchanges) that rebates liquidity providers. Also you don’t need to pay fees for updating orders in orderbook, also great performing matching engine and robust API.
Q: Hedges wants to give users the highest degree of security, but how do they achieve this over the ETH network?
A: Security is maintained through collateral on Ethereum, where users always control their own assets. Hedget is non-custodial exchange protocol. Full collateral is needed to write options, so there is no counterparty risk.
Q: What are the risk control mechanisms offered on Hedget to protect market speculators from major losses in derivatives/options?
A:1. Full collateralization for the first stage
3. HGET staking plus embedded liquidity control mechanisms for the second stage.
Q: How do you plan to onboard the initial liquidity needed for your pools?
A: Good one! So we have 50% of our tokens dedicated to that, also our rebates will do their job, also MM that will ensure liquidity on all levels.
Q: What is the importance of HGET ERC20 token and why does HGET choose Ethereum-based Blockchain?There are many blockchains available. HGET can also choose Trc20, but why ERC20?
A: Ethereum is the biggest ecosystem as of now, but we are building Hedget interoperable with others blockchains in future.
The beauty of fully collateralized options is that you don’t need any insurance fund, option is insurance itself that can NOT be insolvent.
Q: How is Hedget related to Chromia? How does this association influence the Hedget ecosystem and make it more profitable?
A: Chromium is bootstrapping this project. We receive development resources, know-how, and other support from the Chromia team.
Chromia is just so much more efficient to use when developing DeFi products. It is a relational database wrapped in a blockchain, which means we get all the benefits of transparency and immutability. At the same time, we still can develop complex financial products as they are developed in traditional markets on relational databases.
We will have short development cycles with high freedom in functionality.
Q: Currently HGET token is Erc20, does Hedget have a plan for the main network when gas is too high like now? What is the use case for the HGET token on the Hedget platform?
A: HGET will have representation on Chromia Mainnet with 0 tx fees for transfer between Chromia-based wallets.
Q: Does the Hedget team have a training and guidance system for newcomers to cryptocurrency? How do you attract and reach them?
A: It will be suitable for both beginners and veterans.
We are planning to educate community via different videos, instructions, easy digestible guides.
Q: Hedget GOAL is to be “MARKET LEADERS in DECENTRALIZED OPTIONS”
I have a very simple question — What are your plans and strategies in able to achieve this?
A: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 parallel to onboard the liquidity we need.
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