Hedgehog is an algorithmic hedging protocol. The goal of hedgehog is to allow fully decentralized on chain hedging against depreciation of on chain assets. It aims to realize this by using Singe sided Automated Market makers. That is why we call our hedgehog SAM.
SAM is based on Automated Market Makers (AMM) with the difference that the market only has one asset. The other side of the market is a hedge token (hAsset) that is minted on deposit and burned on withdraw based on the position on the bonding curve. For hedgehog we use an exponential bonding curve. Because of the exponential curve, users that deposit later will receive less hAssets. While the hAssets of users that deposit early increase in value. This means that hAssets are inversely correlated to the assets deposited in hedgehog. This allows for SAM to be a prediction market for depreciation in value of assets.