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 Revenue Methodology

## 1. Overview

Hegic revenue represents the total fees collected by the Hegic options protocol from traders purchasing options strategies. The metric captures trading fees paid in USDC when users acquire option positions across various strategies (calls, puts, spreads, straddles, etc.) on the Hegic v1 platform deployed on Arbitrum. Revenue is calculated by identifying new option position acquisitions and extracting the corresponding USDC fees paid in the same transactions.

## 2. Data sources

- **Hegic v1 contract events**: Parsed `Transfer` events from the `PositionsManager` contract on Arbitrum that track option position minting and transfers
- **Arbitrum token transfers**: USDC transfer events from Arbitrum blockchain capturing fee payments
- **Hegic strategy events**: Parsed `Acquired` events from `HegicStrategyCall` contracts that link positions to specific trading strategies
- **Strategy metadata**: Hardcoded mapping of strategy contract addresses to strategy names, underlying assets (BTC/ETH), market sentiment (BULL/BEAR/HIVO/LOVO), and multipliers
- **End-of-day price feeds**: Token price data for USD conversion and decimal corrections
- **Token metadata**: Decimal precision information for accurate amount calculations

## 3. Step-by-step calculation

### Component A: Option position identification
- **Purpose**: Identifies when new option positions are created on the Hegic platform
- **Logic**: Filters `Transfer` events from the `PositionsManager` contract where the `from` address is the null address, indicating new position minting rather than transfers between users. Each minting event represents a user purchasing an option strategy and paying fees to the protocol.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `tokenId`, and minting address

### Component B: Fee extraction from token transfers
- **Purpose**: Captures the USDC fees paid by users when acquiring option positions
- **Logic**: Joins position minting events to USDC token transfer events within the same transaction. Filters specifically for transfers of USDC tokens using the hardcoded address `0xff970a61a04b1ca14834a43f5de4533ebddb5cc8`. The transfer amounts represent the fees paid to acquire the option positions.
- **Key fields**: `value` (fee amount in USDC), `token_address`, and transaction matching fields

### Component C: Strategy classification
- **Purpose**: Maps option positions to specific trading strategies for categorization
- **Logic**: Links position minting events to `Acquired` events from `HegicStrategyCall` contracts using the position `tokenId`. Then joins with a comprehensive mapping of strategy contract addresses to their metadata including strategy names, underlying assets, market sentiment, and multipliers. Creates a component label combining token symbol and sentiment for each strategy.
- **Key fields**: Strategy contract `address`, `strategy_name`, `token_symbol` (BTC/ETH), `sentiment` (BULL/BEAR/HIVO/LOVO), and `component` classification

### Component D: Daily aggregation and USD conversion
- **Purpose**: Aggregates fees by day and converts to USD for standardized reporting
- **Logic**: Groups fee amounts by daily timestamp boundaries, chain identifier, market sector, business segment, and product identifiers. Applies the `convert_to_usd_and_correct_decimals` macro to convert USDC amounts to USD using end-of-day price feeds and correct for token decimal precision. Handles any missing strategy mappings by labeling them as 'Unknown'.
- **Key fields**: Daily `timestamp`, `chain_id` (arbitrum), aggregated `fees` amounts in USD

### Final calculation
- **Revenue equals fees**: The final step treats all collected fees directly as revenue using the `finalize_metric_revenue` macro, which validates the data schema, ensures proper categorization with data_id 'hegic', and fills any date gaps with zeros
- **Time boundaries**: Daily aggregation with timestamps truncated to day boundaries
- **Chain filtering**: Applies availability filtering to ensure only active chain data is included in final results
- **Schema validation**: Ensures consistent metric schema with proper business line categorization as 'Options trading', market sector as 'derivatives', and business segment as 'option'

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

HegicHEGIC

Revenue

Revenue

Competitive landscape

Chain breakdown