Peer-to-pool on-chain options protocol on Arbitrum (V8888 release line). LPs deposit USDC/WETH/WBTC into stake-and-cover liquidity pools that underwrite American-style calls and puts; buyers pay a premium up-front and gas is socialised via the Gas Station Network.
- 01single-call peer-to-pool options purchases
- 02covered call/put strategies as a LP
- 03ETH and BTC ATM/ITM options with no order book
- 04small position sizes with predictable on-chain pricing
- pnpm add viem ethers
- forge install hegic/Hegic-protocol-v8888
| Variable | Scope | Description |
|---|---|---|
| NEXT_PUBLIC_ARB_RPC_URL | Client | Arbitrum One RPC endpoint used to read pool state and write option txs. |
| HEGIC_OPERATIONAL_TREASURY | Client | Address of `OperationalTreasury` — the entry point for buying options across all assets/strategies. |
Use viem/ethers against `OperationalTreasury.buy(strategy, holder, amount, period, additional)` where `strategy` is the address of a `HegicStrategy{ATM,OTM}_{CALL,PUT}_{ETH,BTC}` contract, `period` is option duration in seconds (max 90 days post-V8888), and `amount` is option size in 1e18 of underlying. Read the live premium via `strategy.calculatePremium(amount, period, additional)` before sending — this includes the IV-driven price plus gas reimbursement. Exercise (cash-settle) by calling `OperationalTreasury.payOff(positionId, account)`. LPs deposit by calling `HegicStakeAndCover.provide(amount)` for the asset's pool; withdraw with `withdraw(amount)`. There is no off-chain matching — all pricing and risk lives on-chain.
- ⚑Hegic's IV is sourced from a Chainlink/internal oracle and can lag fast volatility regime shifts — peer-to-pool pricing is single-counterparty, so big writes can systematically underprice tail risk versus an order book.
- ⚑LP P&L is heavily path-dependent: in trending markets the pool consistently underperforms HODLing the underlying because all in-the-money options pay out. Always quote LP returns net of realised payouts, not premium income alone.
- ⚑Maximum option period is 90 days; transactions to `buy(...)` with a period above the strategy's `maxPeriod` revert with `WRONG_PERIOD`. Read the per-strategy max from the strategy contract.
- ⚑V8888 zero-fee/zero-gas claims rely on the Gas Station Network relayer being live — when GSN paymaster is out of funds, users must pay gas directly. Detect and surface this in UI.
- ⚑There is no full-featured TypeScript SDK; integrate against ABIs from the `hegic/Hegic-protocol-v8888` repo and pin your strategy addresses. Old V1/V2 deployments on Ethereum mainnet are deprecated — use the V8888 deployment on Arbitrum One.
- ⚑Position NFTs (`HegicPositionsManager`) are transferrable; if you re-list one, the new holder receives the payoff — your indexer must track NFT transfers, not just `buy` events.