A newly-created decentralized finance (DeFi) asset just surged 5,494% in 72 hours.
zLOT is a staking protocol built on an options trading protocol known as Hegic (HEGIC). The Hegic protocol allows users to bet on the price of Ethereum (ETH) and Bitcoin (BTC).
However, the protocol requires 888,000 HEGIC tokens (approximately $204,000 at time of writing) to activate a staking lot, preventing all but the largest traders from earning staking rewards. zLot aims to also allow small HEGIC holders to benefit from the protocol’s settlement fees by pooling HEGIC tokens.
“Users can deposit HEGIC on the HegicPool.sol contract in order to acquire zHEGIC, the tokenized share of the pool…All the profits generated by the staking lots of the pool are normalized to HEGIC and re-distributed among zHEGIC shareholders.”
Last week, the project was promoted by Molly, the pseudonymous founder of Hegic.
?? M&A + zLOT ??@mollyandandre fund contributed $100,000 $HEGIC in @zLOTFinance + M&A will pay for zLOT's security audit by @peckshield + M&A acquired 10% of $zLOT total supply: 888 $zLOT (~$1M FDMC) + provided 300K $HEGIC into zLOT staking.
— M&A (@mollyandalpha) November 14, 2020
The post gained a lot of attention in DeFi circles in part due to the rumored involvement of Andre Cronje, the famed creator of the decentralized finance darling yearn.finance (YFI).
Molly, however, later denied Cronje’s involvement.
“Today I’ve overshilled zLOT without any particular reason. Sorry for that. Andre doesn’t want to be involved in any token promotion. I will be a solo founder. M&A is now: Molly & Alpha. Andre is not involved. Nothing has changed. M&A still holds 10% of zLOT supply.
I am a fan of actively pushing the results of my development efforts. I’m pushing HegicOptions by myself and would love do the same with M&A’s devs’ projects & protocols. I love good token-economics, not only good tech. I’m still here. Instead of Andre, I now have Alpha with me.”
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