# Welcome to Hedgehog

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Hedgehog is building a prediction market for on-chain native costs, starting with base fee.
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**Hedgehog** is building the **infrastructure layer for on-chain cost prediction and hedging:** a financial system where blockchain costs themselves become **tradable markets**.

By pioneering **Modular Synthetic Blockspace**, Hedgehog turns volatile on-chain costs such as **gas fees**, **priority fees**, and **funding rates costs** into **prediction markets and derivatives**. These markets allow participants to **hedge**, **speculate**, and **discover prices** for blockchain usage; just as traditional finance prices commodities, volatility, or bandwidth.

#### A New Market Primitive: On-Chain Costs Prediction

In every block, limited space drives competition. Users bid through gas prices, creating a constant auction, a pure expression of **supply and demand for computation**. Hedgehog captures this dynamic and transforms it into a **financial primitive** that anyone can trade or hedge against.

We **remove all the complexity of physical blockspace delivery** and isolate only the variable that matters, **the price of using the network**.\
By doing so, we create **markets exposure to blockspace economics**: prediction markets that mirror the cost of on-chain activity, without the need to actually buy or sell blockspace.

#### Prediction Markets for Blockchain Activity

At its core, Hedgehog operates **prediction markets for on-chain costs**. Participants can take positions on future gas levels, congestion, or MEV intensity, expressing views such as:

* “Will Ethereum gas average above 50 gwei tomorrow?”
* “Will Base fees spike by 30% during the next rollup epoch?”
* “Will Bitcoin transaction fees double after a certain launch?”

This transforms blockchain infrastructure into a **living prediction engine,** where traders express expectations about network demand, and builders gain access to **cost predictability and hedging instruments**.

### Medium Articles

[Architecture of the Modular Synthetic Blockspace](https://medium.com/hedgehog-protocol/architecture-of-the-modular-synthetic-blockspace-by-hedgehog-protocol-4a24754303e8)\
[What is Hedgehog?<br>](https://medium.com/hedgehog-protocol/what-is-hedgehog-476594b6dad6)[Hedgehog Protocol Secures $1.5M to Create Modular Synthetic Blockspace!](https://medium.com/hedgehog-protocol/hedgehog-protocol-secures-1-5m-to-create-modular-synthetic-blockspace-787e1be64d23?source=user_profile---------0----------------------------)\
[Taming Gas Fees with Hedgehog — Hedging Use Cases for Smart Wallets and Layer 2 Solutions](https://medium.com/hedgehog-protocol/taming-gas-fees-with-hedgehog-hedging-use-cases-for-smart-wallets-and-layer-2-solutions-6a9fa1fbf8fc?source=user_profile---------1----------------------------)\
[Introducing Modular Synthetic Blockspace](https://medium.com/@TheHedgehog_io/introducing-modular-synthetic-blockspace-2fc0f3233a21?source=user_profile---------2----------------------------)\
[What's the difference between GAS?](https://medium.com/hedgehog-protocol/whats-the-difference-between-gas-4a8dfbc73c69?source=user_profile---------3----------------------------)\
[Can Gas Markets Evolve Overnight?](https://medium.com/hedgehog-protocol/can-gas-markets-evolve-overnight-a1bd93f68782?source=user_profile---------4----------------------------)\
[Trading gas derivatives](https://medium.com/hedgehog-protocol/trading-gas-derivatives-5067cbf303a6?source=user_profile---------5----------------------------)\
[The future of Ethereum gas fees: Sponsored transactions, mass adoption, and evolving market.](https://medium.com/hedgehog-protocol/the-future-of-ethereum-gas-fees-caf7c074434e?source=user_profile---------6----------------------------)\
[Gas hedging for 4337, paymasters, rollups, validators: Hedgehog for B2B](https://medium.com/hedgehog-protocol/gas-hedging-for-4337-paymasters-rollups-hedgehog-for-b2b-23e37f718a4a?source=user_profile---------7----------------------------)\
[Gas markets ⛽️ Blockspace & BaseFee in the Ethereum ecosystem. L2 rollups, account abstraction, and more.](https://medium.com/hedgehog-protocol/gas-markets-%EF%B8%8F-blockspace-basefee-in-the-ethereum-ecosystem-643adeb6e5f5?source=user_profile---------8----------------------------)<br>