Hedgehog Markets

TL;DR

Hedgehog Markets is a leading decentralized prediction market platform built on Solana. It enables users to create and trade on markets predicting the outcome of any real-world event, from sports to elections to asset prices. With an intuitive interface, lightning-fast settlement, and unique pooled liquidity model, Hedgehog is making prediction markets accessible to all.

What are Prediction Markets?

Prediction markets are speculative markets created to trade on the outcome of events. The market price indicates what the crowd thinks the probability of the event is. Prediction markets are powerful forecasting tools, leveraging the "wisdom of the crowd".

While centralized prediction markets have existed for years, they suffer from limitations around creating markets, high fees, and slow settlement. Hedgehog is bringing prediction markets on-chain to Solana, enabling anyone to permissionlessly create a market on anything, with near-instant settlement and low fees.

How Hedgehog Works

On Hedgehog, users can create a market on any event with a definite outcome within a specific timeframe. This could be anything from "Will Bitcoin be above $30k on Dec 31?" to "Will candidate X win the election?". The market creator sets the event, resolution source, and end date.

Other users can then trade on the market, buying "Yes" or "No" shares depending on how likely they think the event is to occur. Share prices are always between $0-$1 and the sum of both shares always equals $1. If the event occurs, "Yes" shares are redeemable for $1. Market prices fluctuate in real-time as users trade, representing the market's predicted probability of the event.

Hedgehog offers several market types:

• Classic markets function like traditional prediction markets with separate order books for Yes and No shares
• Pooled markets use an automated market maker (AMM) model where all Yes/No liquidity is pooled, providing constant liquidity
• Spread markets allow betting on a range, like an asset price or a game point spread
• Contest markets let users compete against each other, earning points for correct predictions

Hedgehog uses an Oracle solution to figure out markets based on predetermined resolution sources, so funds are distributed instantly and fairly once the outcome is known.

Hedgehog's Unique Features

What sets Hedgehog apart is its blend of crypto-native features with a user-friendly interface that appeals to mainstream users.

Hedgehog's pooled liquidity model is a first for prediction markets. Inspired by Uniswap, it aggregates liquidity into a single pool, using an automated market maker to provide constant liquidity and instant settlement. This boosts capital efficiency compared to traditional order book models.

Being built on Solana enables Hedgehog to offer swift, low-cost trades. Users can trade in and out of positions rapidly without worrying about gas fees. Solana's censorship resistance means markets can't be shut down. Composability allows Hedgehog positions to be integrated across Solana DeFi.

The flexibility to create custom markets on anything is powerful. In centralized prediction markets, users are limited to the markets created by the platform. On Hedgehog, the market possibilities are endless.

Lastly, Hedgehog's UI/UX is unrivaled. Creating and trading markets is simple and intuitive. Rich charting and historical data help users make informed decisions. Hedgehog is laser-focused on accessibility, aiming to be the "Uniswap of prediction markets."

Using Hedgehog Markets

Getting started with Hedgehog is easy:

1. Connect a Solana wallet like Phantom or Solflare
2. Deposit USDC into your Hedgehog account
3. Browse Hedgehog's markets and select one to trade
4. Take a position by buying Yes or No shares
5. Track your position on the "Portfolio" page
6. Withdraw your winnings once the market resolves

To create a custom market:

1. Click "Create" on the Hedgehog homepage
2. Enter the market question, resolution source, and end date/time
3. Select the market type (classic, pool, spread)
4. Fund the market with USDC to set the initial liquidity
5. Hedgehog will create a custom market page where anyone can trade

Users can also earn yield on Hedgehog by providing liquidity to specific markets or the platform's central USDC pool. Hedgehog charges a 2% fee on trades which is distributed to liquidity providers.

HHDG Token & Tokenomics

HHDG is Hedgehog's governance token. It enables the community to vote on decisions around platform upgrades, fee distribution, new markets, and more. Holding HHDG is required to create markets and earn higher yield as a liquidity provider.

The initial HHDG supply is 1 billion tokens allocated as follows:

• 51% to the community via liquidity mining
• 22% to the treasury
• 18% to the team (3 year vesting)
• 9% to seed investors (2 year vesting)

Hedgehog's Growth and Future Plans

Since launching in 2021, Hedgehog has seen impressive growth. Total value locked (TVL) has surpassed $20M with 3,500+ active users. Over 2,500 unique markets have been created, with the largest market topping $1.5M in volume.

Future plans include:

• Expanding to new Layer 1 and Layer 2 blockchains
• Adding DAO creation and governance tools tied to prediction markets
• Supporting NFT and off-chain assets as collateral
• Improved APIs and developer tooling to integrate Hedgehog across web3

Hedgehog has completed several audits from respected firms like Open Zeppelin and Kudelski, with no major issues found. The protocol currently controls over $20M in user funds.

Conclusion

Hedgehog is leading the charge in bringing prediction markets on-chain, democratizing access to this powerful forecasting and risk hedging tool. With its unique innovations around pooled liquidity and user experience, Hedgehog is well positioned to be the premier venue for decentralized event betting and probabilistic trading. Built on the battle-tested Solana blockchain, Hedgehog offers users global access, lightning quick settlement, and strong security. As prediction markets gain traction, Hedgehog looks set to play a major role in their growth.