Having passed the proposal to add Hedgey to the 1Hive treasury Management toolkit, 30 HNY has been added to Hedgey via call options and are now available for anyone to purchase.
Why are we doing this?
Selling call options allows us to build a stablecoin treasury for 1Hive in a decentralized way and without putting sell pressure on our beloved HNY token. Building a stablecoin reserve gives us insurance to help withstand market downturns out of our control, and gives us the ability to fund future proposals with stablecoins, should we decide we want that option in order to avoid HNY being sold to cover expenses.
Why buy call options:
People buy call options to have increased positive exposure to a token during price increases. Call buyers make profits when their contracts go above the “strike” price for that contract. More tokens in a contract = more profits when it rises above the strike price. Call options are also attractive because your maximum loss risk is only the price you pay for the premium.
The benefit for 1hive Treasury:
For 1Hive, selling call options will generate xDAI for treasury management when the contracts are purchased, as well as additional xDAI if the contracts are exercised, all without any price-reducing sell pressure on HNY in Honeyswap.
The benefit for community:
Call options are an additional way to get exposure to HNY during price increases. These contracts are good until their expiration.
How to buy HNY call options:
You can view available call options for HNY and purchase at: Hedgey Moon Market
After you buy call options:
If you buy a call option, it will exist in your portfolio page at Hedgey | Decentralized Options Trading. You can resell an option at anytime before it expires or exercise it (take the profits) if it goes above the strike price.
When you purchase an option it will have an expiration date. Your option will be valid until this date.
More information at: Understanding Call Options - Hedgey