Vigilan One Pager

Liquidity pools with automatic range break protection.

Granted by Uniswap Foundation | Audited by Cyfrin | Accelerated by Upbit GIWA

Vigilan provides liquidity pools with automatic range break protection. LPs can deposit assets into Vigilan protected pools to earn trading fees, with a portion automatically funding protection that helps offset impermanent loss from range breaks.

Problem

Concentrated liquidity lets LPs use their capital more efficiently, but price movements can erode returns through impermanent loss. When the price leaves a position’s selected range, the position stops earning trading fees and starts incurring losses.

Managing protection adds more work: LPs must calculate hedge sizes, execute separate transactions, and adjust positions as conditions change.

LPs need protection built into the pool at the point of risk.

Solution

Vigilan integrates protection into the liquidity provision experience using Uniswap v4 hooks on BNB Chain.

Deposit assets. LPs provide liquidity to a Vigilan Protected Pool and earn trading fees.
Fund protection automatically. A portion of those fees purchases protection against predefined range-break events. The remaining fees go directly to LPs.
Receive payouts. If a covered event occurs during the protection period, settlement triggers a payout to the covered LPs.

Underwriters supply the capital behind protection. They earn premiums for accepting range-break risk and bear losses when covered events occur. Each protection market defines its trigger, coverage period, data source, and settlement conditions in advance.

Live Pilot

30-day BNB/USDT pilot on Uniswap v4 demonstrated real trading fees funding automatic protection.

With approximately $5,500 in LP capital, the pool recorded:

Swaps

Trading volume

Trading fees

Range-break events

4,670

$144,855

$362

$241 in trading fees was paid directly to LPs (53.3% APR).
$121 was used to automatically purchase protection.
3 range-break events occurred, and protection payouts equaled 92.2% of the modeled minimum impermanent loss.
The underwriting side recorded $6 in premiums less payouts (8.42% APR), with $867 in cumulative underwriting deployment across the pilot.

Liquidity provision and router registration attracted organic trading, including arbitrage activity. There was no marketing campaign, and the team executed no trades.

Live BNB/USDT Protected Pool

Business Model

Vigilan plans to earn revenue from protection purchases and market settlement:

1% protection purchase fee, deducted from the protection purchase budget.
3% settlement fee on the payout positions, applying to LP protection positions or underwriting positions depending on the outcome.

Growth Strategy

Vigilan starts with concentrated-liquidity LPs on BNB Chain and expands through DEX, chain, and liquidity-provider partnerships.

Grow external LP participation
Expand active pools
Build underwriting capacity
Expand across DEXs

Each additional pool with sustained trading activity can generate recurring protection demand through its trading fees.

Longer term, Vigilan plans to extend protection beyond pools through an AI hedge agent and embedded platform integrations.

Traction

Vigilan Market launched its beta on BNB Chain in May 2026, generating more than $2 million in trading volume and attracting over 500 active users within its first 3 months.

Vigilan received a Uniswap Foundation grant in May 2026 to support product development and security.

In July 2026, Vigilan launched its Chrome extension app, Vigilan AI, which surpassed 350 downloads within its first month.

In August 2026, Vigilan launched its LP Protected Pool on Uniswap with 4,600+ swaps, $144K+ in trading volume in its first 30 days.

Vigilan was selected for Upbit GIWA’s accelerator program in August, with selected teams eligible for native in-app deployment within the GIWA Wallet.

Founder & Team

Kevin Kang, Founder & CEO, studied computer science at University of Illinois at Urbana-Champaign and Seoul National University. He has spent more than a decade building startups and crypto products, contributing to two companies that were later acquired by Kakao. Subsequently, he founded Gracy AI, whose token was listed on Bithumb.

The core team has worked together for more than five years:

Tony, CTO: Former engineering lead at Gracy AI
Elvin, Smart Contract & Security: DEF CON 33 and 34 hacking-competition finalist

Raise

Vigilan is raising to validate protection at the point of risk, starting with LP protection and expanding across broader trading and investment workflows.

The capital will be used to:

Support external LP acquisition, additional protected pools
Establish underwriting infrastructure and liquidity
Validate recurring protection demand across multiple pairs
Scale distribution through Vigilan AI and embedded platform integrations

Beyond capital, Vigilan is seeking strategic backers whose credibility, networks, and industry relationships can accelerate platform integrations and establish Vigilan as trusted financial risk infrastructure.

Resources

Products

Vigilan Website

Vigilan Pool

Vigilan Market

Vigilan AI (Chrome Extension)

Investor Relations

Intro Deck

Product Demo Video

Founder Email

Frequently Asked Questions

How is Vigilan different from traditional insurance?

Traditional insurance relies on a centralized insurer to design policies, price risk, maintain reserves, review claims, and decide whether payouts should be approved. These operational and capital requirements create high fixed costs, making it difficult to offer narrow, short-duration, or platform-specific coverage. Users are also exposed to the insurer’s balance sheet and claims process.

Vigilan replaces that model with an open, market-based structure. Protection is priced through supply and demand, while settlement conditions are defined on smart contracts. When a specified event occurs, payouts are executed automatically on-chain, without discretionary claims adjustment or reliance on a centralized insurance treasury.

This allows Vigilan to support risks that are often too specialized or short-lived for traditional insurers, such as impermanent loss and range-breaks.

How does Vigilan solve the liquidity problem associated with prediction markets?

We are aware that describing Vigilan as a prediction market immediately raises concerns about liquidity. That is why we position Vigilan as a hedging and risk-transfer protocol rather than a general-purpose prediction market.

Traditional prediction markets rely primarily on speculative demand. In markets with skewed probabilities, there may be limited interest in buying the low-probability outcome, making it difficult to sustain balanced liquidity.

Vigilan introduces a fundamentally different source of demand: users who already hold the underlying risk. A hedger is not purchasing a position simply because they expect it to be profitable. They are paying a premium to cap a potentially much larger loss elsewhere in their portfolio.

Because the protection itself has real economic value, hedgers may rationally pay more than the event’s estimated probability. For example, even if a loss event has an estimated probability of 4%, a user may be willing to pay 5% or 6% to insure against a materially larger downside. The hedger is also comfortable losing the premium, because that means the adverse event did not occur.

This additional risk premium creates an attractive opportunity for underwriters. They can take the opposite side, earn premiums from hedgers, and diversify their exposure across standardized markets.

The key distinction is that liquidity on Vigilan is supported by two complementary economic needs: hedgers seeking protection and underwriters seeking yield. Rather than relying on users who believe they can predict outcomes better, Vigilan creates liquidity by facilitating the transfer of existing financial risk.

Who provides liquidity on Vigilan, and how does the market-making model work?

We expect underwriters to perform most of the market-making function on Vigilan.

Hedgers are time-sensitive: they typically want protection at the moment they create the underlying risk, so the natural experience is to purchase protection immediately through a market order.

Underwriters, by contrast, are price-sensitive. They evaluate the probability of the event, required risk premium, time to expiration, and expected return. Based on this assessment, they place resting orders at prices they are willing to accept.

We do not expect every capital provider to actively price and manage individual markets. To support passive participation, we are building the Vigilan Liquidity Provider, or VLP.

Similar in concept to HLP on Hyperliquid or LLP on Lighter, VLP pools stablecoin deposits into an on-chain Earn Vault and allocates capital across approved Vigilan markets within predefined risk limits. Initially, it will automate underwriting and provide foundational liquidity across standardized markets.

As trading volume, historical performance, and pricing data accumulate, we expect sophisticated traders and professional market makers to provide underwriting liquidity directly.

Why did Vigilan build a Chrome Extension?

We built Vigilan AI because it was the fastest and lowest-friction way to deliver protection directly within existing investor user flows.

Instead of requiring platforms to modify their codebases or introduce new dependencies, the extension allows Vigilan to surface relevant protection options on top of supported platform interfaces. Users can purchase protection at the moment they create the underlying risk, without leaving the platform they are already using.

We believe this point-of-risk distribution model can channel significantly more users into Vigilan than relying on them to discover and visit a standalone hedging application.

The extension is our initial distribution strategy. As we establish trust, validate demand, and build stronger relationships with investment platforms, we plan to introduce SDK-based integrations that provide an even more seamless and native protection experience.

Why did Vigilan build a custom Uniswap V4 Hook Pool?

We built the custom Hook Pool to make hedging as automatic as possible for liquidity providers.

Concentrated-liquidity LPs are exposed to range-break risk, but purchasing and managing a separate hedge creates additional friction. Using Uniswap V4 Hooks, we can integrate protection directly into the liquidity-provisioning flow.

In our LP Protected Pool, one-third of the swap fees that would normally accrue to LPs is automatically used to purchase protection in the relevant Vigilan market. If the predefined range break event occurs, the resulting payout is distributed to the affected LPs.

LPs give up a portion of fee income for downside protection and a more predictable return profile. Our live test validated that this can support tighter concentrated ranges with reduced downside exposure and higher fee potential, while reducing the need for constant monitoring or manual hedging.

For Uniswap, the model could improve LP retention and attract liquidity providers who would otherwise avoid concentrated-liquidity strategies because of their downside risk. Uniswap shared this vision and supported its development through a grant.

Last updated 5 days ago

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