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 Fees Methodology

## 1. Overview

This metric tracks daily trading fees generated by the Hegic decentralized options protocol on Arbitrum. Hegic allows users to trade options on BTC and ETH through various strategy contracts, collecting fees in USDC when positions are opened. The calculation identifies fee payments by correlating position minting events with USDC transfers in the same transactions, then aggregating these fees daily by strategy type.

## 2. Data sources

The methodology uses several types of Arbitrum blockchain data:
- **Position minting events**: Parsed `Transfer` events from Hegic's PositionsManager contract, specifically filtering for mints where the `from` address is the null address
- **Token transfer data**: USDC token transfer records from Arbitrum showing fee payments
- **Strategy linking events**: Parsed `Acquired` events from HegicStrategyCall contracts that connect position IDs to specific strategy addresses  
- **Strategy metadata**: A hardcoded mapping of 200+ Hegic strategy contract addresses to strategy names, token symbols (BTC/ETH), sentiment (BULL/BEAR/HIVO/LOVO), and multipliers
- **External price data**: End-of-day USDC price feeds for USD conversion
- **Token metadata**: USDC decimal precision data for amount normalization

## 3. Step-by-step calculation

### Component A: Fee extraction from position creation
- **Purpose**: Identifies trading fees paid when new Hegic options positions are created
- **Logic**: Extracts `Transfer` events from the PositionsManager contract where the `from` field equals the null address, indicating new position mints rather than transfers between users. These events contain `tokenId` values representing newly created positions and occur when users open new options trades
- **Key fields**: `tokenId` (position identifier), `block_timestamp` (transaction timing), `transaction_hash` (for joining with fee payments)

### Component B: USDC fee payment identification  
- **Purpose**: Captures the actual fee amounts paid in USDC for position creation
- **Logic**: Joins position minting events with USDC token transfers using matching `transaction_hash` values. This identifies USDC transfers that represent trading fees paid when positions are opened. Only transfers involving the specific USDC contract address on Arbitrum are included
- **Key fields**: `value` (fee amount in raw USDC units), `token_address` (confirming USDC payments), `transaction_hash` (linking to position creation)

### Component C: Strategy classification
- **Purpose**: Links position IDs to specific Hegic strategy contracts for categorization
- **Logic**: Uses `Acquired` events from HegicStrategyCall contracts to map position IDs from the minting events to strategy contract addresses. Then joins with the hardcoded strategy dimension table to add human-readable strategy names, underlying tokens (BTC/ETH), and sentiment classifications (BULL/BEAR/HIVO/LOVO)
- **Key fields**: `id` (position ID for matching), `address` (strategy contract address), `strategy_name`, `token_symbol`, `sentiment`

### Component D: Strategy metadata enrichment
- **Purpose**: Adds descriptive information about each strategy type
- **Logic**: References a comprehensive hardcoded mapping of 200+ Hegic strategy addresses to metadata including strategy names like 'CALL_100', 'PUT_90', 'STRADDLE', underlying token symbols, market sentiment, and complexity multipliers. Handles cases where strategies are not in the mapping by labeling as 'Unknown'
- **Key fields**: `component` (formatted as token symbol + sentiment), `strategy_name`, `multiplier`

### Final aggregation
- **Combining components**: Joins all fee extraction data with strategy metadata, then groups by daily timestamp boundaries using `timestamp_trunc` function with day granularity, chain identifier, and strategy component
- **Currency conversion**: Applies the `convert_to_usd_and_correct_decimals` macro to convert raw USDC amounts to USD values using end-of-day price feeds and adjusts for USDC's decimal precision  
- **Time aggregation**: Truncates all timestamps to daily boundaries and groups fees by day, chain, market sector, business segment, and strategy component
- **Final calculation**: Sums all fee amounts by day and strategy type, applies the `finalize_metric_fees` macro with 'fill_zeros' strategy to ensure complete daily time series coverage, validates schema requirements, and filters results based on chain availability settings

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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Fees

Fees

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