HedgeHog Protocol

What is this?​

HedgeHog is a DeFi protocol that hedges against the inherent impermanent loss of Uniswap liquidity pools using NFTs. It does that by creating a derivative (NFT) of the expected value of such IL, using heavy off-chain computation in optimistic rollups.

You can mint and trade such NFTs, and claim protection in the protocol. Meanwhile, the insurance is funded by HEDH token using bonding curve so you can buy and sell HEDH token in our protocol as well.

How it's Made​

This project, Hedgehog Protocol, is a financial engine designed to shelter a normal DEC trader from downside risk. In general, the protocol works based on the central limit theorem.

The frontend integrates with Wallet Connect, the communications protocol for Web3, enabling wallets and apps to securely connect and interact.

It uses Cartesi to calculate the insurance premium, Chainlink to get the live price of ETH/USD, and Wallet Connect to manage the account. We use Solidity smart contract as backend, react.js as front end. Cartesi was deployed in the Monte Carlo simulation to calculate the premium price.

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