Hedgey is foremost a product built by the Parachute team, and as such, it is part of the Parachcute Token ecosystem. The Options contracts on Hedgey charge a fee on the premium for all sales of options from the option sellers (not on the writing, buying, or exercising). Those fees will be allocated to a forthcoming Parachute Governance Contract. In the interim, the fees will be sent to a company controlled account. Once the staking contract is live the collected fees will be sent to the governance contract and distributed in the first distribution wave.
The governance contract will allow $PAR holders to stake into the contract to vote on decisions such as fee amounts and other administrative functions of the parachute product ecosystem. As compensation for participating in these governing functions, the fees collected from various Parachute products, such as Hedgey and the Social Liquidity Platform and soon others, will be distributed as ETH to the PAR Stakeholders (aka PAR stakers in the Governance Contract). 80% of the fees collected will be distributed to PAR Stakeholders, and 20% to the Parachute company. More on this topic to be explained when the Parachute Governance and Staking Contracts are launched.
What is Parachute?
Parachute launched three years ago with the goal of giving people better access and integrations with their cryptocurrency. Parachute has two flagship products. Its first, ParJar Wallet, has enabled over 1.6 million in-chat cryptocurrency transactions and is putting the world’s best DeFi tools inside one app that lives in the places where people chat. The second is Hedgey, which you know all about.
The token powering the Parachute projects is PAR, the Parachute Token. PAR is a utility and governance token. As a general rule, 80% of the fees collected through the current and future Parachute products will go to PAR stakeholders. 20% will go back to Parachute as company fund for product development and company business.
DISCLAIMER
The contents of this article are written with current developmental goals and feasibility in mind and are prone to change. As such, no rights can be derived from the contents herein.
All investments involve risk, including the possible loss of principal. Investors should consider their investment objectives and risks carefully before investing.
