🖐️Welcome to Hedgehog Protocol
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 What is Hedgehog? Hedgehog Protocol Secures $1.5M to Create Modular Synthetic Blockspace! Taming Gas Fees with Hedgehog — Hedging Use Cases for Smart Wallets and Layer 2 Solutions Introducing Modular Synthetic Blockspace What's the difference between GAS? Can Gas Markets Evolve Overnight? Trading gas derivatives The future of Ethereum gas fees: Sponsored transactions, mass adoption, and evolving market. Gas hedging for 4337, paymasters, rollups, validators: Hedgehog for B2B Gas markets ⛽️ Blockspace & BaseFee in the Ethereum ecosystem. L2 rollups, account abstraction, and more.
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