CVP Proposal: Hedgehog Protocol On-chain gas derivatives

Project name: Hedgehog Protocol

What is our project about?:

Gas derivative protocol focusing on AA (account abstraction) wallets, L2 rollups, and similar 4337 paymaster use cases for hedging BaseFee. Overall, Hedgehog Protocol is building a secure infrastructure for on-chain financial derivatives that can go beyond Ethereum BaseFee: including Bitcoin hash rate, EigenLayer hedging, and even end-user speculation.

What are we going to build?:

We are building a composable protocol that capitalizes on the untapped potential of on-chain gas economics. Our system offers B2B and B2C solutions centered around the gas market in the Ethereum ecosystem. For our B2C users, we provide an opportunity to speculate on gas prices and hedge against gas price volatility, opening up a whole new asset class for trading and risk management.

On the B2B side, we’re expanding our offerings to include solutions for Layer 2 rollups and paymasters through account abstraction and gas hedging. By doing so, we’re providing DeFi projects and service providers with essential tools to manage their gas cost exposure, particularly relevant in the dynamic Ethereum gas market.

Our protocol aims to stabilize the blockchain ecosystem by making gas price volatility a tradable and hedgeable asset. Please check the intro deck.


Our product is novel because it uniquely integrates gas price speculation and hedging within a user-friendly, accessible protocol. While the idea of a token tied to the BaseFee price has been around, no solution has made it as accessible and functional for both B2B and B2C users as we aim to do. And there previously was a lack of organic flow as the AA and rollups didn’t exist, so the potential was only CEXes which aren’t DeFi-native, unlike the others.

For B2B clients, our solution is a pioneering entry into the market, offering Layer 2 rollups, paymasters, and other Ethereum-based businesses a much-needed mechanism to hedge against the volatility of gas prices, thus optimizing their operational costs.

For B2C clients, we are opening up a new asset class for speculation. This novel application goes beyond just hedging and trading - it adds a new dimension to the DeFi ecosystem, allowing traders to leverage fluctuations in gas prices.


Q2-Q3: Initial Development & Oracle Integration

Deploy Liquity-like contracts (Solidity and Backend)

BaseFee Oracle integration

Start initial marketing planning.

Q3-Q4: Audit, Beta Testing, & Feedback Stage

Conduct third-party security audits.

Begin Beta testing of the platform.

Initiate private feedback stage.

Intensify pre-launch marketing activities from mid to end of Q3.

Q4: Guarded Launch & Community Building

Guarded launch of Hedgehog Protocol on L2.

Start significant community marketing initiatives.

Start user acquisition and build traction.

Q1: Token & DAO Launch

Token liquidity launch and DAO launch

Continued user acquisition and growth activities

Plan and initiate marketing for a token launch

Q1 and Beyond: Scaling & Iterations

Continuous platform improvement and feature expansion

Continue with community engagement, content marketing, partnerships, and regular updates to attract more users and maintain user interest.

Problems solving:

Financial Risk Management : With the Hedgehog platform, users and protocols can lock in future gas prices today, making costs predictable and managing the financial risk associated with gas price volatility.

Stabilization of Operations : Hedgehog can help stabilize operation costs for applications requiring frequent interactions with L1 by providing a hedging mechanism.

Incentivizing User Interaction and Engagement : Our plan includes various strategies to incentivize user engagement. This encourages users to interact with the Hedgehog platform and promotes increased activity and growth in the Metis ecosystem.

Integration and Composability : The Hedgehog platform is designed to be integrated and composed with other protocols. This means that other projects in the Metis ecosystem can leverage our platform to manage their gas price risk, further enhancing the utility and value of our solution.

This is a brief overview of our protocol. Our team members can address any questions and provide further details on any topic of interest.

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Dear Team of Hedgehog Protocol,

We sincerely thank you for taking the time to apply and meet with your team about the Community Verification Process. We enjoyed learning more about your business as well as your features and product direction. We regret to inform you that we’ve to Decline your application due to the lack of necessary Content Requirements for passing the CEG, which are described at Proposal Requirements - Community Ecosystem Governance

  • Early Stage Product, Low Current Utility.- No MVP; Feel free to submit Grant Application
    ClickUp Forms. Waiting for you on Testnet stage

Once you get missing Content Requirements, feel free to submit the proposal again in CVP in Review category, and we will be happy to resume the process

Thank you for your consideration.

Metis Team

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