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Ledig’s onchain hedging product connects buyers who want a fixed exchange-rate choice with writers who provide the tokens needed to honour it. It is designed for approved businesses, payment service providers and institutional participants managing stablecoin and currency exposure. The protocol is built for Base, an Ethereum layer 2 network. Its contracts record the option terms, hold the committed collateral and carry out the token exchange when the buyer exercises. A buyer pays an upfront premium for the right to exchange one specified token for another at an agreed rate before an exact expiry. The buyer can use that right if it suits their needs, or leave it unused. A writer supplies the full amount of the token the buyer may receive. In return for accepting the exchange obligation, the writer earns a share of the premium. These docs cover Ledig’s onchain hedging product. Ledig’s payment services, virtual accounts and ordinary currency conversions have separate product documentation. A balance or account on the wider Ledig platform should not be assumed to fund an onchain position automatically.

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The problem it addresses

A business may know that it will need a dollar stablecoin next month while holding or expecting funds in another currency. An adverse exchange-rate movement can make that future purchase more expensive. An option gives the business a specified rate it can choose to use before expiry. Paying for that choice means it can retain flexibility if its plans change or a better exchange becomes available elsewhere. The premium is still a cost, whether or not the option is used. This protection concerns the exact onchain tokens named in the option. It does not by itself guarantee a bank conversion rate, token redemption value or access to local currency.

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The three roles

The writer supplies the collateral behind the option. Ledig is not the trading counterparty simply because the transaction uses Ledig’s protocol.

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From purchase to expiry

  1. Choose a market. Review its two tokens, fixed exchange rate, expiry and available offers.
  2. Purchase the right. Pay the premium for a specific amount. The purchase does not send that amount of collateral to you immediately.
  3. Decide whether to exercise. Exercising means providing the required payment token and receiving the promised token at the agreed rate.
  4. Act before expiry. Exercise is manual. Any unused rights expire at the stated deadline, with no premium refund.
The writer’s collateral is committed before an offer can be sold. It cannot be withdrawn while it backs an active obligation, and it is not lent out or reused elsewhere. These rules reduce reliance on a writer finding the promised tokens later. They do not remove contract, token, network or economic risk.

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Start with the guide that fits your role

If you are evaluating the product, read How hedging works for a complete numerical example, then Markets and terms. If you want to buy protection, begin with Getting started. If you want to provide liquidity, begin with Providing liquidity. Both roles should read Risks. Full collateralisation is a funding requirement, not a guarantee of profit or uninterrupted access to tokens.