DeHedge is the decentralized risk-hedging platform for cryptocurrency investors. DeHedge hedges investments in ICOs and cryptocurrencies, safeguarding investors in case of exchange rate fluctuations, scams, and project cancellations.
Automatic pay out DeHedge’s smart contracts are programmed to automatically pay out in full in case of a hedged event.
DeHedge uses Ethereum, which is a public blockchain. The investor can waive an automatic pay out and opt not to make a hedging claim.
The hedging is backed by the hedging reserve The investor's activation of hedging coverage is reserved by a smart contract, which implies the formation of collateral for the full coverage of losses incurred by the investor.
The investor has the ability to track the volume of reserved compensation at any moment via blockchain technology.
DeHedge aims to create hedging tools for the cryptocurrency and ICO market.
Hedgers are provided with the opportunity to insure their investments against fluctuations in cryptocurrency and token prices. Reducing the risks also lowers the potential profits. In case of an insured event, an investor shall be reimbursed their investment less the insurance premium. The investor’s maximum loss will therefore be equal to the cost of the latter.
DeHedge supports two insurance strategies:
Hedging Initial Token Offerings
An investor getting an insurance coverage for the purchase price of project tokens pays the insurance premium to receive the right to sell the tokens at the same price later on. This works in the same way as a PUT option in a financial market, giving the option holder the right to sell an asset at a predetermined price. But, in case of DeHedge, the rights and obligations of the parties are different. Only DeHedge has the obligation to buy back a project token in case of an insured event. The token owner, on the other hand, has the right, but not an obligation, to exchange the token for the insurance premium.
Insurance coverage for primary token offerings is unlike any instrument on the financial market.
Hedging Publicly Traded Project Tokens
Hedging involves buying or selling a limited options contract on a crypto exchange.
An options contract (also known as option) is a derivative financial instrument that gives the buyer the right, and the seller the obligation, to buy/sell a certain asset at a predefined price later on. For this right, the buyer pays the so-called option premium. A DeHedge contract defines the insurance period and the range of prices for insured tokens. Similarly to ICO insurance, DeHedge has the obligation to buy back the token in case of an insured event.
|“||Q2 / 2017: — Formation of the Investment Research team and the Data Science department
— Start of the development of a scoring model
Q3 / 2017: — Testing the scoring model
Q4 / 2017: — Development of a platform for hedging risks of investors in ICO projects
— Start of work of the investment committee (formation of a collegial expert investment committee)
Q1 / 2018: — Launch of the Beta version of the platform
— Test hedging ICOs
— Launch of the investor's Personal Account within the framework of the DeHedge ICO
— Completion of registration procedures in accordance with US law (Regulation D) for the sale of tokens in the United States to American qualified investors
— Development of a platform for hedging tokens on the secondary market
— Private / Public Pre-Sale
— Establishment of partnerships with underwriting pools and liquidity providers
— Road Show
Q2 / 2018: — Testing the platform for token hedging on the secondary market
— Calibration of the existing scoring model
— Road Show
— ICO Main Sale
— Obtaining the license for an operational company for the core business — financial services
— Launch of the hedging platform for tokens on the secondary market
— Formation of the secondary market risk management system
— Testing options desks on a real portfolio of market risk with the development of a strategy for dynamic DH risk hedging
— Building front-to-back business processes
— Launch of test analytical coverage of significant ICOs and events affecting the dynamics and cost of crypto assets (available to a limited number of subscribers)
— Building cross-cutting, front-to-back business processes to integrate investment research and scoring into the DH risk management system
— Formation of partnerships with mining pools
— Launch of underwriting and consulting services
Q3 / 2018: — Launch of the DeHedge research portal
— Launch of a product to hedge the risks of mining farmsbuyers from exchange rate fluctuations
— Completion of automation of front-to-back business processes
— Publication in the investor's Personal Account of the first pool of tools available for hedging with DHTs
— Launch of the platform Telegram chat-bot
Q4 / 2018: — Launch of hedging on alternative blockchains
— Start of development of AI for project scoring
— Launch of a mobile platform application
— Registration of additional legal entities in the DeHedge group of companies for operations scaling purposes
— Publication of periodic materials of investment research for a wide range of investors
Q1 / 2019: — Start of development of a derivatives trading website (based on the decision of the investment committee in case of a shortage of instruments and toolkits on the main platform necessary to meet the needs of platform users)
— AI scoring testing
Q2 / 2019: — Launch of AI scoring
— Development of a Beta version of the derivative platform with full functionality for hedging positions
Q3 / 2019: — Launch of a derivative platform with full functionality for hedging positions