PAR and Hedgey

Hedgey is a product built by Parachute and is a part of the Parachute Token ecosystem. The Options contracts on Hedgey charge a fee on the premium for all sales of options from the option sellers (not on the writing, buying, or exercising). Those fees will be allocated to a forthcoming Parachute Governance Contract. In the interim, the fees will be sent to a company controlled account. Once the staking contract is live the collected fees will be sent to the governance contract and distributed in the first distribution wave.

The governance contract will allow $PAR holders to stake into the contract to vote on decisions such as fee amounts and other administrative functions of the parachute product ecosystem. As compensation for participating in these governing functions, the fees collected from various Parachute products, such as Hedgey and the Social Liquidity Platform and soon others, will be distributed as ETH to the PAR Stakeholders (aka PAR stakers in the Governance Contract). 80% of the fees collected will be distributed to PAR Stakeholders, and 20% to the Parachute company. More on this topic to be explained when the Parachute Governance and Staking Contracts are launched.