Hedgehog Protocol

Hedgehog Protocol is a decentralized derivatives protocol focused on gas fees. Its core business allows users to mint a synthetic token pegged to Ethereum's base fee through a Collateralized Debt Position (CDP) model, using wstETH as collateral. These tokens can be traded on its dedicated AMM (V60), enabling users to hedge against or speculate on future gas price fluctuations.

The market pain point it addresses is the high volatility of Ethereum transaction costs, which creates uncertainty for dApps, wallets, and individual users. By tokenizing the base fee, Hedgehog turns an unpredictable operational expense into a tradable financial instrument, allowing businesses to lock in predictable gas costs and users to protect themselves from sudden fee spikes.

Its core narrative is the creation of a "gas derivatives market" as a new primitive in DeFi. The protocol's design, inspired by Liquity, uses a dynamic fee mechanism to maintain system stability, while the AMM ensures continuous liquidity for these tokens.

Regarding recent development (2026-03-02 to 2026-09-02), based on available public information, the protocol has been operating its testnet and engaging with its community through social channels. However, no significant protocol upgrades or major partnership announcements were found in this period. It's worth noting that the project remains in an early stage, and its mainnet has not yet launched, which limits its real-world usage and liquidity depth.