Coinspeaker
Hedgehog Protocol Secures $1.5M in Funding to Improve Blockchain Efficiency
Hedgehog Protocol, a DeFi protocol that tackles the issue of impermanent loss in Uniswap liquidity pools using non-fungible tokens (NFTs), has launched a project that aims to simplify and improve the gas market and blockspace management. The project has received $1.5 million in pre-seed funding and has gained support from influential investors and institutions, showing their confidence in its vision and technology.
To understand Hedgehog Protocol’s mission, it’s important to know about gas fees. In blockchain networks like Ethereum, users have to pay gas fees to cover the computational effort needed to carry out transactions. As the demand for blockspace increases, gas prices go up, resulting in higher transaction costs and potential issues.
Hedgehog Protocol revealed on their X page their plans on how they intend to tackle these challenges by introducing the concept of Modular Synthetic Blockspace. This new approach creates a free market for on-chain derivatives, starting with Ethereum blockspace. By simplifying things and allowing customization, the protocol empowers users to adapt to real-time market conditions easily.
🚀🦔 We’re thrilled to announce that Hedgehog Protocol has successfully closed its pre-seed funding round!
Our commitment to simplifying and optimizing blockspace and gas markets has earned the support of key figures and institutions. This gives us a boost to further develop… pic.twitter.com/ayrS0cgAJM
— Hedgehog Protocol 🦔 (@TheHedgehog_io) March 6, 2024
One of Hedgehog Protocol’s main initiatives is the development of a derivative token that tries to copy the current prices of crypto transaction fees. If successful, this token could help protocols protect themselves against fluctuating transaction fees, bringing predictability and stability to a volatile market.
User-friendly and Adaptable Design
The protocol is designed to be user-friendly for both regular Ethereum users and large-scale decentralized application (dApp) developers. It allows the buying or selling of synthetic gas assets based on the current market conditions, eliminating the need for fixed prices or predictions of future market movements. This streamlines the gas market management process.
Broad Applicability Beyond Ethereum
Beyond Ethereum, Hedgehog Protocol has plans to expand its model to other blockchain ecosystems. Their solution could also affect Bitcoin transaction fees, data availability costs, Arbitrum and Optimism rollups, paymasters, and wallets with account abstraction. This wide applicability shows the protocol’s forward-thinking approach and commitment to meeting the evolving needs of the blockchain industry.
Strong Investors Backing
The successful pre-seed funding round has attracted a diverse group of investors, including notable ones like Vasiliy Shapovalov, co-founder of Lido Project; Mike Lobanov, co-founder of Target Global; and Danish Chaudhry, co-founder of Paper Ventures. Also, institutions and venture capital firms like Nothing Research, Tenzor Capital, Marshland Capital, Prometeus Ventures, 3Commas Capital, and ZBS Capital have also supported the project, providing a solid foundation for its strategic and financial plans.
Hedgehog Protocol aims to provide targeted solutions that reduce gas costs, improve efficiency, and lower operational expenses. It focuses on financial use cases such as rollups, account abstraction wallets, and exchanges. The protocol’s innovative approach to the gas market and blockspace optimization has the potential to reshape the blockchain ecosystem, creating a more user-friendly and cost-effective environment for developers and users.
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Hedgehog Protocol Secures $1.5M in Funding to Improve Blockchain Efficiency
Source: https://www.coinspeaker.com/hedgehog-protocol-1-5m-funding/