Hedgehog is bringing access to various prediction markets
Question1: Please briefly introduce Hedgehog to us by using several keywords or sentences to describe the characteristics and features of your project.
George: Hedgehog Markets is a decentralized prediction market, built on the Solana blockchain. Our vision is to offer the most user-centric prediction markets platform. We believe users should be able to access prediction markets with more liquidity, more intuitive UX, and more interesting and ubiquitous markets. We are also working on new primitives and market types that are made possible by the speed and low fees of Solana.
Question2: Today we’ve got this rare chance to invite George to our event. Could you please share with us more about the stories behind your team? What are the opportunities that brought your team members together?
George: Hi everyone and I are George, the founder of Hedgehog. I studied Math + CS at Columbia, before working at Oscar Health, a healthcare startup that recently IPO’d, and later at Google, where he did ML research.
The Hedgehog Markets team is a collective of DeFi & decentralized prediction markets power users who obsess over experience and who also believe it’s time for prediction markets to shine. This team came together thanks to my network and close friends from Columbia, who have worked deeply in the crypto space for several years.
Question3: What is DPM (Decentralized Prediction Markets) and what is the basic operation mechanism to predict the market? How can DPM be employed by the users? Why did Hedgehog select the track of DPM?
George: A prediction market — also known as an information market or decision market — is a platform where participants can predict the outcome of future events. Users of the platform can hedge or trade on a series of outcomes, from election results to sports events to auction sale prices.
DPMs use smart contracts that execute actions between buyers and sellers. This mechanism allows parties to transact directly with each other and removes the need for intermediaries. Following the conclusion of a market, these smart contracts interact with data services, or oracles, to authenticate the outcome and automatically distribute the results to users. In addition to smart contracts and oracles, DPMs need traders (users trading “yes” and “no” shares) and liquidity providers (who seed the markets with “yes” and “no” shares to trade).
Prediction markets can also be a reliable forecasting tool. A market with high participation helps provide an indication of general sentiment about that market, thus more closely approximating the probability of a certain outcome. This information is made completely open to the public for anyone to use — maybe even to “predict the future.”
I have always been interested in ways to probabilistically determine the distribution of future events. Decentralization provides the incentive layer for users to directly share their beliefs, without needing to go through a third party. This results in more reliable and more representative data on users’ true beliefs.
Question4: There will be three different modules including 「Market、Portfolio、Leaderboard」on the Devnet Platform（closed beta） of Hedgehog Could you please give us a brief introduction to these contents?
George: Market” is where users can go to see all markets available to trade. At this time, we offer only binary markets (“yes” and “no” outcomes) but this may evolve in the future.
“Portfolio” is where users can go to see their wallet/collateral, as well as the positions they have taken in various markets (“yes” or “no”, and how much). It will also show ROI per position. There is also another tab in “Portfolio” where users can see their liquidity positions if they have provided liquidity to any markets.
“Leaderboard” is currently only for our Devnet Competition which ended recently. This was a way for users to track how much ROI they were earning from trading on devnet, and whether they were in the top rankings.
Question 5: Hedgehog has attracted plenty of preferences from investment institutes. Could you please share with us the financing progress for the moment?
George: We are grateful and fortunate to have spoken to so many incredible people and institutions who are interested in Hedgehog’s future. We aim to finalize our plans soon.
Question6: In your opinion, what are the advantages and main features Solana has compared with the existing public chains such as Ethereum, Polkadot, and BSC which have already formed a certain scale of an ecosystem? Do you consider Solana to be at a rather passive status? Why does Hedgehog choose to join the Solana ecosystem rather than the other public chains?
George: We chose to build Hedgehog on Solana because of its speed and low network fees. We believe that this provides a strong foundation for our entire user experience. We have seen a lot of growth in the Solana ecosystem since we first started building our project, and we are excited about their current Hackathon and attention to their community.
Question 7: We have already had many projects in the Decentralized Prediction Markets, such as FTX、Augur、Polymarket, etc. What are the advantages and main features Hedgehog has compared with these projects?
George: FTX is not a prediction market, though it does offer derivative products. Hedgehog Markets focuses very heavily on being user-centric — this permeates all aspects of our development. We aim to deliver prediction markets with more liquidity, more intuitive UX, and more interesting and ubiquitous markets. It should be easy for users to understand, and a joy for them to use.
Question 8: Among the numerous markets predicted by Hedgehog, how can the users get to know the detailed information about each market predicted?
George: For each market, we include a market description below the price chart as well as links to the resolution sources that will provide trustworthy information on what the correct outcome of the market will be on the end date.
Question 9: And among those markets predicted by Hedgehog, how can the users select an appropriate market and start to trade? How do you add or remove liquidity?
George: Once you’ve decided on a market to trade, click into it. YES or NO shares will resolve to $1.00, depending on which outcome is correct according to the resolution source, on the resolution date.
You can input how many sHOG worth of shares you’d like to buy. Play around with inputting different amounts and watch as the metrics of your trade respond dynamically.
Liquidity providers provide liquidity to the market, which enables traders to trade Yes and No shares. On Mainnet, liquidity providers will be rewarded with fees from users’ trades! We hope to provide liquidity providers as well as traders with a superior experience that benefits user growth and the ecosystem. On Devnet, we will monitor the liquidity levels for each market and ensure there is just enough for users to trade actively.
To add liquidity, click on the “Add Liquidity” button on a market trade page. A modal will display, and you can enter the amount of sHOG you’d like to add to the market. When you are ready, click “Add Liquidity” and Approve the transaction in your Solana wallet. This will give you an amount of LP shares in exchange for the amount of sHOG you added to the LP.
We recommend checking out our User Guide on Medium for more information https://hedgehog-markets.medium.com/hedgehog-markets-a-user-guide-devnet-335083bebceb
Question10: For value capturing, what is the tokenomics of Hedgehog, and how do you stimulate the users to hold your tokens in the long run? What are some application scenarios of your token?
George: We are currently on Devnet — users are participating in our Beta via sHOG, a stable value Devnet Token. Please keep in mind that Devnet tokens are for testing only, and do not hold real value. Hedgehog is committed to building the best possible platform for users, and growth is our highest priority. If we release a token it would have utility in the platform and in the hands of users!
Question 11: What other plans does Hedgehog have recently? Any new products being launched? Will you cooperate with the other projects? Apart from Solana, will Hedgehogs support any other public chains?
George: Our Devnet Competition was closed-beta signup. Now that the competition is over, we will be opening up our devnet beta to anyone who would like to try it out. In the meantime, the team is building towards a mainnet launch (soon).
Follow us on Twitter and join our Discord and Telegram channel for the latest updates!