The option buyers pay premiums (revenue) to HEGIC stakers, who collateralize the option positions and cover the buyers' potential profits from their collateral.

Hegic is a non-custodial options exchange built on Arbitrum. Hegic was founded by Molly Wintermute and launched in 2020.



HEGIC tokenholders own and govern the protocol. They charge a premium (revenue) for each option that is bought on the platform.

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Hegic

# Hegic Expenses Methodology

## 1. Overview

The Hegic expenses metric measures token incentive costs incurred by the Hegic options protocol. This metric represents expenses related to token-based rewards or incentives paid to users, liquidity providers, or other participants in the protocol ecosystem. For Hegic, this metric is systematically set to zero, indicating that the protocol does not currently incur token incentive expenses.

## 2. Data sources

The calculation uses the following data sources to establish the dimensional framework:

- **Arbitrum blockchain events**: Parsed `Transfer` events from Hegic v1's `PositionsManager` contract on Arbitrum
- **Token transfer data**: USDC transfer records on Arbitrum blockchain to identify fee-generating transactions
- **Strategy metadata**: Hardcoded configuration data mapping Hegic strategy contract addresses to token symbols, strategy names, and market sentiment classifications
- **End-of-day price feeds**: USD conversion rates for tokens (used in related fee calculations that provide the dimensional template)

## 3. Step-by-step calculation

### Component A: Trading activity identification
- **Purpose**: Establish the dimensional framework and timing structure for when expenses could occur
- **Logic**: Extract `Transfer` events from Hegic's `PositionsManager` contract on Arbitrum and match them with corresponding USDC token transfers. Filter for transfers where the `from` field equals the null address, indicating new position creation or minting events. Join with strategy configuration data to classify activities by token type and market sentiment. Truncate timestamps to daily boundaries to create the time dimension structure.
- **Key fields**: Block timestamps for timing, transaction hashes for event linking, strategy addresses for classification, USDC transfer amounts for context

### Component B: Token incentive calculation
- **Purpose**: Calculate the actual token incentive expenses
- **Logic**: Use the dimensional structure from trading activity identification but systematically set all token incentive values to zero. This hardcoded zero value indicates that Hegic does not currently have token incentive programs or expenses.
- **Key fields**: `token_incentives` field set to 0, `timestamp` for daily grain, `chain_id` for Arbitrum, `product_id` for protocol classification

### Final aggregation
- **Combining components**: The trading activity framework provides the dimensional structure (timestamps, chains, product IDs), while token incentives are uniformly set to zero across all records
- **Currency conversion**: No conversion needed since all values are zero
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation
- **Final calculation**: The final expenses metric equals zero for all time periods and dimensional combinations, processed through standardization macros to ensure complete time series coverage and proper schema formatting

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total project operating and incentive expenses.

HegicHEGIC

Expenses

Expenses

Competitive landscape

Chain breakdown