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Hedgehog v2 Gas Fees Hedging Architecture

Hedgehog v2 — Gas Fee Hedging Architecture

Hedgehog v2 introduces a gas fee hedging architecture designed for account abstraction (AA) wallets, paymasters, and rollups that need to stabilize gas exposure and operational costs in real time. Instead of relying on synthetic assets or complex delivery models, Hedgehog integrates options and prediction markets directly into the transaction lifecycle — allowing systems to hedge, speculate, or lock in predictable gas costs.

The result is a modular framework where gas, MEV, and other on-chain costs become financially hedgeable variables, enabling builders to create cost-stable experiences for users without abstracting away market efficiency.

1. Core Actors & Components

• AA Users — Users interacting through Account Abstraction wallets who trigger on-chain transactions.

• Bundler — The node or service responsible for collecting, validating, and executing user operations.

• EntryPoint — The smart contract interface that validates and routes user operations.

• Paymaster — A smart contract that sponsors gas fees on behalf of users, enabling gasless transactions.

• Options Market for Blockspace — A permissionless marketplace where actors can buy or sell options contracts representing the future price of gas or priority fees.