Hegic · interactive mechanism simulation

Peer-to-pool options: LPs fund a single shared counterparty; buyers pay a premium priced off an admin-set implied volatility and the pool fully collateralizes every option it writes. At expiry the position is either OTM (pool keeps the premium) or ITM (pool pays the buyer out of its own capital) — the structural adverse-selection risk that dogs pooled option writing.
Liquidity providers deposit ETH/WBTC/USDC Option buyers buy calls & puts Hegic pool 150.0 ETH NAV IV 60% (admin-set) Collateral locked 0.0 ETH · 0 open full collateralization Expiry settlement American-style, cash-settled OTM → pool keeps premium Buyer payouts (ITM) 0.0 ETH paid out ITM chance: 34%
Options written
0
Pool NAV
150.0 ETH
Premiums collected
0.0 ETH
Payouts to buyers
0.0 ETH
Open positions
0
Parameters — edit me
60%
8%
8 ETH
1.0/s
150 ETH
Controls

Illustrative simulation. Defaults mirror the researched Hegic mechanism (pooled LP collateral, admin-set implied volatility, full collateralization per option, cash settlement), but trade sizes, timing and moneyness outcomes are randomized for visualization — not live onchain data. The drain button dramatizes the structural risk described in the entry: static IV lets informed buyers systematically win, draining LPs. Part of The Onchain Experiment Atlas.