🦔What is Hedgehog?

A high-level overview of the protocol

Hedgehog is an infrastructure for on-chain native derivatives, starting with Modular Synthetic Blockspace. Focusing on L2 rollups, validators, and AA paymasters, while providing trading opportunities for speculators and MEV searchers on speculating and hedging Basefee.

The protocol capitalizes on the potential of on-chain gas economics. The system offers both B2B and B2C solutions centered around the gas market in the Ethereum ecosystem. Hedgehog mirrors the economic essence of blocks without getting into physical blockspace delivery complexities. This approach allows us to create a gas derivatives market that both sophisticated providers and general users can interact with: buy, sell, build passive strategies, and hedge BaseFee among various other onchain derivatives.

Modularity

Hedgehog’s modular design opens the door to a multitude of possibilities beyond Ethereum baseFee. Tailored to any specific need of the blockchain community. Hedgehog not only addresses the immediate issue of gas fee volatility but also sets the stage for broader applications of synthetic assets like Bitcoin fees and Eigen rates, Celestia Data Availability and end user speculation, for example.

For B2C users

From the traders' point of view, the high volatility of gas fees makes the BaseFee token an excellent asset to trade. It provides traders several opportunities to capitalize on these fluctuations, diving into the market and seizing the chance to generate substantial profits more frequently than most assets.

On the B2B side

The main advantage Hedgehog offers to businesses lies in its simplification of the gas price hedging process, providing a strategic tool to mitigate the impact of gas price fluctuations. This is particularly beneficial for businesses that depend on gas fees as part of their operational costs (like the vast majority of Ethereum projects).

Hedgehog Protocol offers solutions through account abstraction and gas hedging. DeFi projects and service providers can manage their gas cost exposure. Our protocol aims to bring more stability to the blockchain ecosystem by making gas price volatility a tradable and hedgeable asset.