🦔What is Hedgehog?

A high-level overview of the protocol

Hedgehog is building a financial layer that transforms real time blockchain costs, such as base fees, Bitcoin transaction fees, priority fees, and funding rates, into hedging instruments and tradable assets.

This enables users to hedge, speculate, and gain pricing predictability on otherwise volatile on-chain costs. Just as AWS made server costs predictable, Hedgehog brings cost efficiency and stability to the blockchain economy, for users, builders, and businesses.

Modularity

Hedgehog’s modular design allows the same framework to extend far beyond Ethereum’s base fees. It can synthesize and trade costs from any blockchain primitive, including:

• Bitcoin transaction fees and funding rates

• Base fee

• ETH/BTC Funding rates

• MEV priority fees

This modularity makes Hedgehog a foundation for on-chain cost markets, enabling any community to build hedging or speculative products around their native economic variables.

For Traders (B2C)

For traders, Hedgehog’s cost prediction markets introduce a completely new category of trading — markets built on the volatility of blockchain itself. Instead of speculating on tokens, traders speculate on the price of using the network. Each block, each spike in gas, each lull in activity becomes a data point to forecast, analyze, and trade.

These markets enable high and medium-frequency strategies where volatility stems from blockspace demand, priority fees, and network congestion cycles. Much like traditional traders anticipate movements in oil prices or volatility indices, Hedgehog participants trade on the pulse of on-chain activity, taking long or short views on future gas trends, congestion surges, or perp markets demands.

Fully on-chain and transparent, these prediction markets create a new financial frontier, where blockchain performance itself is the underlying asset. Traders can capture short-term inefficiencies, speculate on macro shifts in demand, or hedge exposure to transaction costs.

On the B2B side

For protocols, validators, and service providers, gas fees and priority costs are unpredictable operational expenses. Hedgehog simplifies on-chain cost hedging, letting businesses lock in predictable gas rates and protect margins against volatility. Through account abstraction integrations, protocols can directly manage their gas exposure or build hedged paymaster systems for users — ensuring cost stability and predictability in transaction-heavy operations.