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 Notional trading volume Methodology

## 1. Overview

Hegic notional trading volume measures the total USD value of options trading activity on the Hegic protocol. The metric calculates the notional value by multiplying the strike price by the option size and applying strategy-specific multipliers to account for complex multi-leg options strategies. This provides insight into the scale of derivatives trading activity and capital allocation within the Hegic decentralized options protocol.

## 2. Data sources

- **Hegic protocol events**: Parsed `HegicStrategyCall_Acquired` events from Hegic v1 contracts on Arbitrum, containing option trade details including position ID, amount, and strike price
- **Position management events**: Parsed `PositionsManager_Transfer` events from Hegic v1 on Arbitrum, tracking option position creation and transfers
- **Strategy metadata**: Hardcoded mapping of Hegic strategy contract addresses to their corresponding token symbols (ETH/BTC), strategy names, sentiment classifications, and complexity multipliers
- **End-of-day price feeds**: Token price data for USD conversion of calculated notional values
- **Chain availability data**: Arbitrum blockchain operational status for data quality validation

## 3. Step-by-step calculation

### Component A: Option trade extraction
- **Purpose**: Identify and extract individual options trades from Hegic protocol events
- **Logic**: The calculation begins with `HegicStrategyCall_Acquired` events which are emitted when users acquire options positions. These events contain the core trade data including position ID (`id` field), option amount (`amount` field), and strike price (`strike` field). The events are joined with `PositionsManager_Transfer` events using the position ID to identify genuine new position creation, filtering specifically for transfers from the null address which indicates minting of new positions rather than secondary transfers
- **Key fields**: Position `id` for linking events, option `amount` in wei format, `strike` price in 8-decimal format, strategy contract `address` for classification

### Component B: Strategy classification and normalization  
- **Purpose**: Map strategy contract addresses to trading metadata and normalize amounts
- **Logic**: Each Hegic strategy contract represents a specific options strategy (calls, puts, spreads, etc.) with different underlying tokens and complexity levels. The strategy dimension table maps contract addresses to token symbols (ETH or BTC), strategy names, sentiment classifications (BULL/BEAR/HIVO/LOVO), and multipliers reflecting strategy complexity. Option amounts are converted from wei format to standard decimal units based on the underlying token - ETH amounts are divided by 10^18 while BTC amounts are divided by 10^8. Strike prices are normalized by dividing by 10^8 to convert from the protocol's fixed-point representation
- **Key fields**: `token_symbol` for decimal conversion, `sentiment` for strategy classification, `multiplier` for complexity weighting, normalized `amount` and `price` values

### Component C: Notional value calculation
- **Purpose**: Calculate the total notional trading volume for each options trade
- **Logic**: For each options trade, the notional value is calculated by multiplying the normalized strike price by the normalized option amount and applying the strategy-specific multiplier. The multiplier accounts for the complexity and capital requirements of different strategies - simple calls and puts use 1x, spread strategies use 2x, strap and strip strategies use 3x, and butterfly and condor strategies use 4x. This reflects that complex strategies involve multiple option legs and higher notional exposure
- **Key fields**: `notional_trading_volume` as the product of `price` × `amount` × `multiplier`

### Final aggregation
- **Combining components**: Individual trade notional values are aggregated by day using daily time boundaries truncated from the block timestamp
- **Currency conversion**: Notional values are converted to USD using end-of-day price feeds through the finalization macro, which handles currency conversion and decimal standardization
- **Time aggregation**: Data is grouped by day with a fill strategy that inserts zero values for days without trading activity, ensuring complete time series coverage
- **Final calculation**: The final metric represents the total USD notional value of all Hegic options trading activity per day, properly weighted by strategy complexity and converted to standard currency denomination

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

Total USD value of derivative contracts executed on the protocol.

HegicHEGIC

Notional trading volume

Notional trading volume

Competitive landscape

Chain breakdown