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 Total value locked Methodology

## 1. Overview

Total Value Locked (TVL) for Hegic represents the USD value of all tokens held in Hegic protocol contracts on Arbitrum. This metric measures the total capital deposited and retained within the Hegic options protocol by tracking token balances across five specific contract addresses. The calculation treats TVL as equivalent to net deposits, providing a direct measure of user funds committed to the protocol.

## 2. Data sources

- **Blockchain transaction data**: Arbitrum transaction logs and traces that record token transfers and balance changes
- **Token balance events**: Parsed token transfer and balance change events from Arbitrum blockchain
- **End-of-day price feeds**: Daily USD price data for tokens held in Hegic contracts
- **Token metadata**: Token symbol and decimal information for proper balance calculations
- **Protocol addresses**: Five hardcoded Hegic contract addresses on Arbitrum that hold user deposits

## 3. Step-by-step calculation

### Component A: Token balance change tracking
- **Purpose**: Tracks token balance changes for Hegic protocol addresses on Arbitrum
- **Logic**: Monitors five specific Hegic contract addresses (`0xd47ef934e301e0ee3b1ce0e3eebcb64de8b231be`, `0x822c0e3afbcfbd166833f44ad82f28354a57cf28`, `0xec096ea6eb9aa5ea689b0cf00882366e92377371`, `0x60898dfa3c6e8ba4998b5f3be25fb0b0b69d5d5d`, `0xb0f9f032158510cd4a926f9263abc86baf7b4ab3`) for token balance changes. Uses blockchain transaction data to calculate net balance changes over time for each token at each address. Processes data incrementally with daily partitioning for efficiency.
- **Key fields**: `timestamp`, `chain_id`, `account_address`, `token_address`, `token_symbol`, `balance` (the net change in token balance)

### Component B: Cumulative balance calculation
- **Purpose**: Converts balance changes into running cumulative balances over time
- **Logic**: Takes the balance changes from Component A and calculates cumulative sums using window functions partitioned by timestamp grain, chain, account address, and token address. This creates a time series of total token balances held at each address. Forward-fills missing values to ensure continuous data coverage across all time periods.
- **Key fields**: `balance` (now representing cumulative balance rather than change), `timestamp`, partitioning dimensions

### Component C: USD conversion and filtering
- **Purpose**: Converts token balances to USD values and applies business logic filters
- **Logic**: Joins cumulative token balances with end-of-day token price feeds to convert all balances to USD values. Multiplies token `balance` by `price_usd` to get USD amount. Filters to include only positive balances and daily timestamp grain. Inner join ensures only tokens with available price data are included.
- **Key fields**: `amount` (USD value of token balance), `timestamp`, `chain_id`, `account_address`, `token_address`

### Component D: Business classification
- **Purpose**: Applies Hegic-specific business segment classification
- **Logic**: Classifies all data as derivatives `market_sector_id` and option `business_segment_id`, reflecting Hegic's role as an options protocol. Sets `product_id` to null as there are no sub-product distinctions. Renames USD `amount` field to `net_deposits`.
- **Key fields**: `market_sector_id`, `business_segment_id`, `product_id`, `net_deposits`

### Final aggregation
- **Combining components**: The processed data flows through a finalization macro that ensures proper schema structure, validates identifiers, and applies gap-filling strategies
- **Currency conversion**: All values are already converted to USD using end-of-day price feeds matched by timestamp, chain, and token address
- **Time aggregation**: Data is aggregated at daily grain with forward-filling applied to maintain continuous time series
- **Final calculation**: TVL equals the net deposits value directly - no additional transformation is applied. The metric represents the total USD value of tokens held across all five Hegic contract addresses on Arbitrum at each point in time

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

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Total value locked

Total value locked

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