For decades, traditional markets have leveraged financial derivatives to extend the capacity of their assets. Beyond centralized platforms, retail traders haven’t had true access to a true world of financial derivatives. Even in the world DeFi we’ve been beholden to our Goliaths.
Over the next decade, the DeFi space will uncover new and powerful ways where these decentralized financial tools unlock potential old finance models can’t dream of. With the launch of Hedgey, for example, any project can join the world of derivatives, as can any trader. With Hedgey, traders get access to a fully functional FD platform without the need for banks, brokers, or hedge funds.
As the future of money evolves, so does the future of derivatives. We need DeFi derivatives now because we need platforms that let the little guy be the big guy, the bank, the broker, and the hedge fund. We’re launching Hedgey to start the conversation on how the future of finance evolves, and we welcome you to join us.
Decentralized options have key differences compared to centralized options. Because they are fully non-custodial by nature they require user action at every step, whereas centralized options have some automated features.
Unlike options on centralized platforms, Hedgey options are fully transparent thanks to them living on public blockchains. This means every option is provably fair and immutable. In other words, no hedge fund or broker can get between you and your gains.
When an option has expired, the option writer will manually have to close the position to retrieve the underlying asset amount. Traditionally, this would have been done automatically by the broker. A small price to pay for decentralization. 😉
Decentralized options lock the underlying asset in an immutable, provenly fair, time-locked smart contract. This means the option owner will have the right to exercise the contract.