Transaction fee management is a new concept that I have recently learned on the crypto. Such type of the crypto tokens which deals with the overcollateralized tokens. I recently learned one such token which is known as the BaseFee. This token is about arbitrage mechanism that deals with the average transaction fees price. When it comes to creating on chain derivatives such usage of the BaseFee token can come into effect. Hedgehog protocol is the one that is working behind the BaseFee token.
They recently raised 1.5 M for their first seed round. And they are going to continue developing for the project development on the fluctuating transaction fees prices.
Let's say there are fluctuating transaction fee prices that needs to be mirrored and handled, in such case BaseFee like token can be of use for the transaction fee management. The reason such tokens were developed and managed was because of such context. I have realized that it's kind of pretty cool project especially for bitcoin and ethereum where the fees can go out of hands.
Hedgehog Protocol has managed to raise funds for pushing such type of the project ahead. And hopefully this would help the overall functionality of project to handle things in a better way.
As you can see some of the top investors have invested into this project. And this would be pretty handy especially on the stablecoin level when dealing with the chains which have a lot of transaction fee fluctuation. And such tokens would come in handy in the grand scheme for maintaining peg with the overcollateralized vaults.
This looks like a good project for the specified use case space. I am sure in near future things would improve as well. I have loved the concept and I am sure they would continue the development and bring some stability in the crypto fintech space.
