> For the complete documentation index, see [llms.txt](https://docs.vigilan.market/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vigilan.market/vigilan-one-pager.md).
# Vigilan One-pager
## Vigilan - P2P Hedging Layer for DeFi
**Uniswap Foundation Grant | $1M+ Beta Trading Volume | 500+ Active Users**
Vigilan provides event contract based protection for DeFi risks that perps, options, and traditional Web3 insurance cannot effectively cover.
Hedgers pay a premium to cap losses from a clearly defined risk event, while Earners underwrite that risk in exchange for yield. Payouts are funded by matched liquidity and settle automatically on-chain according to predefined rules.
***
#### Problem
DeFi users constantly take on event triggered risks they cannot effectively hedge.
Liquidity providers face impermanent loss and range breaks. Stablecoin holders face depegs. Lenders and borrowers face liquidations, oracle failures, and protocol-specific events.
These are not simply directional price risks. They are specific events that cause losses after capital has already been deployed.
Perpetual futures and options primarily hedge price direction, while Web3 insurance depends on pooled treasuries and requires slow or discretionary claims. Protection is also rarely available inside the workflow where the risk is created.
***
#### Solution
Vigilan converts objectively measurable DeFi risk events into two-sided markets.
Each market has a predefined trigger, coverage period, data source, and payout condition.
Hedgers pay a premium to cap potential losses. Earners commit capital to underwrite the event and earn the risk premium. If the event occurs, settlement is executed automatically.
***
#### Hedge Demand Acquisition
**Vigilan acquires hedge demand at the point of risk.**
**Chrome Extension**
Detects a user’s DeFi position and surfaces a relevant, appropriately sized hedge without requiring the user to leave the underlying protocol.
**Partner SDK**
Allows DeFi or wallet platforms to embed protection directly into their existing deposit, lending, trading, and liquidity-provision workflows, while earning a share of the fees generated from protection purchased through the integration.
**LP Protected Hook Pool**
Provides Uniswap v4 custom pool that automatically allocates a portion of LP trading fees toward impermanent-loss protection, covering LPs from range breaks while requiring no additional action.
***
#### Earn Demand Acquisition
**Vigilan acquires underwriting capital through a stablecoin earn vault.**
**Vigilan Liquidity Pool — VLP**
Allows yield seekers to deposit stablecoins into a diversified vault that algorithmically allocates underwriting liquidity across eligible Vigilan markets based on predefined pricing, exposure, and risk limits.
***
#### Business Model
Vigilan monetizes from the Hedgers while keeping the Earner side free.
* **0.5% Buy Fee** when a Hedger purchases protection
* **2% Payout Fee** charged only when a hedge pays out
The partner revenue share creates a direct financial incentive for DeFi protocols and wallets to integrate and distribute Vigilan protection within their own products.
* **Embedded Partner Fee:** 2% Buy Fee, with 1.5% distributed to the integration partner and 0.5% retained by Vigilan
As Vigilan becomes embedded across more DeFi workflows, revenue scales with the volume of risk transferred through the protocol.
***
#### Traction
Vigilan launched its beta on BNB Chain in June 2026, generating more than $1 million in trading volume and attracting over 500 active users within its first month.
In July 2026, Vigilan launched its Chrome Extension app, which surpassed 350 downloads within its first month.
Vigilan received a Uniswap Foundation grant to support product development and security.
Building on this early traction, the team is now expanding distribution through embedded integrations across DeFi platforms and developing automated liquidity workflows, including the launch of an LP Protected V4 Hook Pool on Uniswap.
***
#### 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
* **Yeon, CMO:** Former BD at MiL.K, led Binance Alpha listing, Upbit token operations, $100M+ volume campaigns, and BNB Chain and OKX Wallet partnerships
***
#### Raise
Vigilan is raising to validate embedded distribution and establish LP protection as its initial DeFi risk wedge.
The capital will be used to:
* Launch embedded integrations with DeFi protocols and wallets
* Establish third-party underwriting liquidity through the VLP
* Validate repeat hedge demand before expanding into additional DeFi risk categories
Beyond capital, Vigilan is seeking strategic backers whose credibility, networks, and industry relationships can accelerate integrations and establish the protocol as trusted DeFi risk infrastructure.
***
#### Resources
[Vigilan Website](https://vigilan.market/)
[Vigilan App](https://app.vigilan.market/)
[Vigilan AI](https://vigilan.ai/)
[Vigilan AI Chrome Extension](https://chromewebstore.google.com/detail/versus/lghppholnedbgnlkfpbgmgplegecdjck)
[Product Demo Video](https://www.youtube.com/watch?v=ESD6ZlhConE)
***
#### 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 protocol-specific coverage. Users are also exposed to the insurer’s balance sheet and claims process.
Versus 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 Versus 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 Versus as a prediction market immediately raises concerns about liquidity. That is why we position Versus 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.
Versus 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 Versus 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, Versus 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 the Chrome Extension because it was the fastest and lowest-friction way to deliver protection directly within existing DeFi user flows.
Instead of requiring protocols to modify their codebases or introduce new dependencies, the extension allows Vigilan to surface relevant protection options on top of supported DeFi 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 DeFi protocols, 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 impermanent loss and 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 their fee income in exchange for downside protection and a more predictable return profile. This may allow them to keep capital deployed for longer without continuously monitoring prices or manually managing hedges.
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.
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