cadillion's comments

Why would a crypto security firm be incentivized to tell people there is LESS crime? They want to sell MORE services for hunting down criminals. They are the de facto FBI enforcement arm. If you don't believe them, check the FBI's official numbers:

https://www.fbi.gov/contact-us/field-offices/philadelphia/ne...

Tether has public audited reports from BDO Italia S.p.A, the fifth largest independent firm globally, which are made available directly on their website.

https://tether.to/en/transparency/?tab=reports

You can keep your skepticism, but it helps to update your beliefs on new information.

Man, looking at the comments it's crazy to me that hn's knowledge of a $3T industry hasn't evolved at all in 7 years. For those not in the know, Bridge, the stablecoin partner here, was just purchased by Stripe for $1.1B because they see future cost savings from using stablecoins for global remittances and forex.

https://fortune.com/crypto/2024/10/22/stripe-announces-1-1-b...

It's cool to have some skepticism, but update your beliefs. Scams and illicit transactions in crypto are actually smaller by proportion in all crypto than in USD or other fiat currencies at .3% last year.

https://www.chainalysis.com/blog/2024-crypto-crime-report-in...

This looks like just a secure enclave that you can deposit any crypto onto, so whether you trust the manufacturer of your smart card or credit card or not is up to you. Seems like there are easier ways to run a crypto scam, imo

# What is MPC?

Multi-party computation is an exciting new technology that allows individuals to cooperate in signing cryptocurrency network transactions without any one party knowing all the information necessary to create a valid transaction. If you imagine there's a vault that holds your money, and you need two unique keys to open the vault, then MPC would be like giving each key to different people so they both have to agree to remove money from the vault.

In the case of this MPC wallet, the client holds a copy of both keys, so they can open the vault and sign transactions whenever they want. But Hedgehog and Capsule each only get one copy of one key, so they are not able to sign transactions individually; both parties are needed to reach the signing threshold.

The Hedgehog app enables users to open up their own on-chain MPC wallet, connect their existing exchange accounts via API, onramp or offramp funds, and automate their portfolio on any connected venue at their convenience, all without revealing their private keys! That means we can save you time, quickly add new tokens, search out alpha, and optimize risk for your unique tolerances

# Something for everyone

With the launch of these on-chain wallets, we're opening up a whole new universe of assets and strategies that fit each client’s suitability profile and preferences. Most notably, Hedgehog has teamed up with [OpenEden](https://openeden.com) to provide a Fixed Income stack for eligible clients, featuring access to TBILL tokens.

A first foray into Real-World Assets (“RWAs”), TBILL tokens represent a claim on a regulated US Treasury Bill fund, tokenized and offered on the Ethereum and Arbitrum networks—that's on-chain AAA-rated debt. Businesses and accredited individuals both can confidently self-custody their own TBILL, while tokens are redeemable for USDC 24/7.

Given the collapse of several regional banks in 2023, TBILL is a convenient way to diversify corporate cash reserves or personal cash deposits, while still receiving competitive yields.

All our usual asset baskets remain available for both custodial and non-custodial wallets, whether that's trusted indices from CoinDesk or FTSE Russell, or the standard Hedgehog stacks.

Every stack is fully customizable, from the asset list to individual allocations, even the strategy that determines your investment criteria. Our dream is to offer tunable and automatic yield farming, airdrop farming, fraud prevention, transaction forgiveness, one-click checkout experiences, and more.

# The next billion wallets

Web3 is complex enough without having to figure out where to store your tokens or how to get the best prices. For investors who are looking to dip a toe into the world of digital assets, and for institutions looking to keep up with the new generations that increasingly hold their wealth on-chain, Hedgehog is a novel solution for making web3 accessible and easy to manage. All you have to do is download the app, and a piece of the new world wide web can be yours.

For any of you founders and future execs out there, please remember that a startup is a marathon, not a race. You need to take care of yourself and your co-founders, especially when your industry is imploding and you have every reason to doubt yourselves and your choices.

The SEC and Congress still have yet to make clear rules and guidelines for web3, opting instead for a program of legislation by enforcement that has left judges confused, as they remand the commission to submit to formal rule-making processes. Despite this, we’ve been working hard on this latest product release because we believe it is truly a better paradigm for the future of finance, data ownership, and network resilience.

It has been a trial and a triumph to see our first rebalances on-chain, and we hope that some of you will benefit from the fruits of our hard labors. We are, to the best of our knowledge, breaking new ground by assisting retail with their MPC wallets with full automation capabilities. Please sign up today and take advantage of the offering.

* Being registered as an investment adviser does not imply a certain level of skill or training. This is not investment advice, nor an offer to buy or sell securities. Assets are not SIPC or FDIC insured. Investing involves risk, including loss of principal, and digital assets may not be suitable for all investors. For risks pertaining to MPC wallets, see relevant disclosures in form ADV-2A.

The above material and content should not be considered to be a recommendation to invest in any Stack or individual digital asset. Investing in digital assets or cryptocurrency (collectively “digital assets”) is highly speculative and volatile, and digital assets are only suitable for investors who are willing to bear the risk of loss and experience sharp drawdowns.

The materials available are educational only and not investment or tax advice.

Past performance does not guarantee future results and the likelihood of investment outcomes are hypothetical in nature. Any past performance in the above material of digital assets do not represent the performance of any Hedgehog’s customer and does not reflect the deduction of any Hedgehog fees or fees charged by exchanges used to process transactions.

Investments in digital assets are: Not FDIC or SIPC Insured • Not Bank Guaranteed • May Lose Value

Before investing, consider your investment objectives and Hedgehog’s fees and expenses

Hey @hboon, we don't yet have direct wallet integration or deep links, but it's in the roadmap. We'd like to integrate walletconnect.org, walletlink.org, metamask, or similar.

Currently, adding wallets to Hedgehog lets you add a public address that can be scraped for transactions and balances, or an api key if the wallet is an exchange.

Let's take a real world example: doing a 1031 exchange to get favorable tax treatment on a home sale.

Let's say that you have a property you want to sell, there's a buyer for your home, and there's a seller of a second property you want to exchange into. In order to lock the escrow on the property you want to buy, you first need to lock escrow with the buyer for your home, and prove the sale so that the bank will give you the mortgage for the rest of the second home.

This is a fairly complex transaction that happens all the time, and the solution is to try and wrangle as many as six parties (eg property holders, lien holders, lenders, and buyers) into communicating with each other to make this happen. It often takes months!

Now imagine that you have NFTs for each property that represents the title, the banks have a flash loan contract that validates all the prices for the NFT's using Chainlink or similar as an oracle, and there's an escrow contract that validates every leg of the contract will execute an atomic swap, or none at all. People do similar activities today, all the time in yield farming. If this was the status quo, such complicated transactions could be concluded in a day, across any jurisdiction that was willing to respect an NFT swap as a transfer of ownership.

There are definitely some gotchas here to work out, as we see all the time in cases like IRON and TITAN, but we believe that these are growing pains instead of permanent unsolvable show-stoppers. And we want to be ready for the day that such transactions are commonplace and approved by sovereign jurisdictions.

Well you can read the Chainalysis report yourself, if you like (https://blog.chainalysis.com/reports/2021-crypto-crime-repor...) and compare it to the UN's Office on Drugs and Crime (https://www.unodc.org/unodc/en/money-laundering/overview.htm...). Chainalysis works with US law enforcement to track and eliminate illicit activity via cryptocurrency.

It turns out that illicit activity has dropped precipitously as a proportion of all cryptocurrency volume, and in reality proportionally less money is spent on crime with crypto than world fiat (0.34% in crypto via Chainalysis vs 2-5% in fiat via United Nations). On a pure cash basis, it's not even close ($10 billion in crypto, $1.6 - $4 trillion in fiat).

We definitely encourage you to check out our Discover page (https://live.hedgehog.app/discover), because the space has evolved a lot since 2014. From storage coins like Filecoin, Sia, and Storj; to oracles/prediction markets like Augur, Gnosis, and Chainlink; to cross-chain shims like ThorChain, Ark, or Polkadot.

We might be in the peak of inflated expectations, and the trough of disillusionment could be just ahead, but that doesn't mean that the plateau of productivity isn't right around the corner.

Thanks for the feedback @levi_n! We've added a space for notes in our database and are working on publishing walkthroughs for individual exchanges.

Please let us know if you run into any other speed bumps.

Thanks @bibz38, we don't currently support trading bots through our API, but we will add it to our list of feature requests.

Also, we do not charge any fees for helping you trade on your own exchanges. Once we have the appropriate licenses, we will offer custodial accounts with us where we make money by keeping a piece of the "bid-ask spread", ie when we connect you to the best price anywhere, we can find a price so good that we can keep a small percentage of the sale and still give you a better price than you'd find on your own.

In order to provide trade forwarding to your custodial exchange, we must send the necessary transaction request data back to your exchange, which is why the privacy policy says we share transactions with third parties.

We do not sell transaction or balance data to anyone, for marketing purposes or otherwise, nor do we tag this data with Personally Identifying Information.

Let us know if you have any other questions!

We're only a week into the official batch, which has been packed full of bootcamp classes on sales, marketing, analytics, product development, and fundraising, but the additional resources have been incredible. Various deals with former YC companies and other major service providers have already saved us a lot of money, and access to Work at a Startup helped us scale up our team very quickly. We're excited to see what else we'll learn over the next couple months with our group partners and our fellow founders.

In terms of future roadmap, we're looking at:

- Layer 2 contracts and additional wallet providers' balance synchronization

- A custodial wallet providing best execution on any exchange

- Automatic rebalancing, yield optimization, and tax-loss harvesting under an investment adviser license and money transmitter licenses

- Smart contract marketplaces and fiduciary, discretionary execution

Sonya got introduced to us through a mutual friend actually! We're completely stoked to have her working with us. :)

Blockfolio has a subset of our functionality, but they have no intention to move into the advising space. Once we have our licenses, we plan to take full advantage of the different opportunities made possible by cryptocurrency and make these technologies more accessible to the average person.

Thanks @vmception. We've gotten a lot of feedback today and the Defi smart contract tracking seems to be the biggest pain point. We'll definitely be prioritizing the feature over our next couple sprints.

Keep an eye out for updates!

So currently we don't host any wallets. Clients open custodial accounts with pre-existing exchanges and then leave an API key for us to retrieve transaction and balance data. When they request a trade, we simply let the exchange know that the client has requested a trade, and we don't move any money on the client's behalf.

We are currently seeking money transmitter licenses so that we can offer a hosted wallet of our own, where we hold the exchange accounts on the client's behalf, and act as their counterparty for every trade so they don't have to maintain accounts at multiple venues. This version of the application is not yet available.

It looks like our landing page ran into a caching issue, but the prices at https://live.hedgehog.app are up to date.

We're pushing a fix ASAP!

Good question, we've answered a couple times in this thread already, so please forgive the copypasta:

You are correct, for this smart contract to work you need defined rules around how the money is released should either party falsely claim success or failure, so you need to rely on automation or some third party to validate fulfillment of the contract. So you're back to an oracle problem, how do I know I can trust the validator?

The nice advancement here is that anyone can be that third party! Your smart contract can explicitly identify a third party for multisig, or you can rely on a validator pool of mechanical turks instead of a licensed escrow agent, and accordingly the cost of escrow can decrease.

The nice part is that this is customizable, and built into the very rails that move money. It's a much lower barrier to entry than trying to build something like that for ACH, and that's what excites us about cryptocurrency.

We do not currently have money transmitter licenses as we do not move any money for you (yet), we merely pass your trade requests to your exchange.

To your point, though, we are pursuing these licenses in every jurisdiction where required so we can start offering this service. We're also registering as an investment adviser so we can offer financial advice. This takes time and a lot of capital, but we believe the end result will be worth it.

Much appreciated, we've added it to our issue tracker. Keep 'em coming!

We currently don't provide these tax services but it's very much in the roadmap. We're already working with accountants to make sure that we can support specific identification at the point of trade so you can optimize your tax implications before you place your trade!

We don't support automated BlockFi syncing yet, due to a limited API, but we're always open to intros to get them integrated. If you don't see them in our wallet list, let us know and we'll add them to the index.

Regarding your wash rule example, we can take it a step further, eventually! Let's say you bought 1 BTC each at $12k in 2018, 6k in 2019, and $20k in 2021 and you wanted to sell 1 BTC at the top for $60k. We could help you specifically identify the BTC you bought at $12k so you could pay capital gains on a $48k gain instead of income tax on a $40k gain. This is uniquely possible because we have the full view of all your exchange venues.