Decentralized Finance · Layer 2 Infrastructure
HOOD PROTOCOL
A cooperative "Robin Hood" DeFi layer that extracts predatory MEV & institutional liquidations to sponsor retail gas, backstop slippage, and fund quadratic yield.
Scroll down to inspect the continuous stacked catalog layers.
EXECUTIVE SUMMARY
Why Traditional "Robin Hood" Tokens Collapse
Most "Robin Hood" crypto projects rely on simplistic token taxation: "Tax the whales 5%, give 2% to holders". These tokenomic designs inevitably collapse due to lack of organic buy-pressure, liquidity drain, and astronomical trading friction.
The Hood Paradigm Shift
Hood Protocol ($HOOD) replaces speculative transfer taxes with an institutional-grade, algorithmic infrastructure: Counter-MEV Redistribution and Whale Arbitrage Socialization.
By operating our own suite of internal backrun arbitrage searchers, automated batch auctions, and Dutch liquidation keepers, Hood intercepts the predatory value usually stolen by institutional MEV bots. This yield is streamed directly back to regular users.
THE MEV & RETAIL EXPLOIT
Today's decentralized finance is tilted heavily toward predatory institutional players who exploit public mempools at the direct expense of everyday traders.
Retail trades execute with -EV (Negative Expected Value) due to sandwich attacks, high gas overhead on small swaps, and toxic slippage during volatility spikes.
"Take from institutional dark-pool extractors; stream back to verified human retail participants."
Whales & HFT Bots
- • Direct co-located RPC connections to block builders (Flashbots, MEV-Boost).
- • Sandwich retail transactions to extract slippage spread risk-free.
- • Instant high-capital liquidations forcing cascading market sell-offs.
Everyday Retail User
- • Zero gas fees via ERC-4337 smart account sponsored paymasters.
- • Protected routing through internal Sherwood private mempool bundles.
- • Automatic refund vault if slippage diverges beyond quote specifications.
SMART CONTRACT ARCHITECTURE
Select Modular Contract:
Directly validates, bundles, and pays for the user's gas using funds drawn from internal MEV arbitrage profits.
// Gas Validation Execution Flow
1. Check sender against SybilManager.sol verification status.
2. Verify user 30-day cumulative usage ≤ TierQuota (3 tx/day for verified humans).
3. Transfer native gas (ETH / ARB) directly to EntryPoint bundler.
4. Emits GasSubsidized(user, sponsoredGwei, mevRef).
Monitors pool imbalances created by high-volume whale swaps and pairs each retail swap with an atomic internal backrun in the exact same transaction bundle.
// Backrun Bundler Mechanism
1. User executes multi-hop DEX swap on Uniswap v3/Curve pool.
2. Router triggers atomic backrun rebalancing pool to fair external price.
3. Disallows external searcher frontrunning via private mempool routing.
4. Net profit routed directly to HoodTreasuryVault.sol.
Acts as an automated insurance buffer. If unpredictable block builder delays or transient market shocks cause trade slippage beyond quote parameters, the guard pays the difference.
// Execution Loss Formula
ΔP = | P_execution - P_quoted |
if (ΔP > AllowedTolerance && ΔP ≤ MaxReimbursement) {
USDC.safeTransfer(userAddress, ΔP_USD_equivalent);
}
Replaces conventional linear whale-favored staking with sub-linear mathematics. Staking 100x more tokens does NOT give 100x more rewards.
// Quadratic Weighting Algorithm
EffectiveStake_i = √(StakedTokens_i)
UserRewardShare = EffectiveStake_i / ∑ EffectiveStake_all
// Whale Surplus Diversion:
Stake > 100,000 $HOOD → excess yield routed to retail pool
SYBIL RESISTANCE ARCHITECTURE
How do we prevent bots from draining free gas credits?
On-Chain History Gate
Before claiming any gas credit, `SybilManager` inspects wallet telemetry. The address must be at least 30 days old and possess 5+ non-faucet transactions.
• 5+ Tx on Arbitrum/Mainnet
• Anti-Mixer provenance filter
Modular Identity Attestations
Users seeking higher transaction tiers verify through zero-knowledge or cryptographic proofs without revealing their legal identity.
• Gitcoin Passport ≥ 20
• EAS Community Attestation
Graph Cluster Analytics
Graph indexing identifies wallets funded by common master accounts. Ephemeral farm clusters are instantly flagged and downgraded to standard fees.
• 3 swaps / 24h rolling cap
• Max trade size: $2,500/tx
FAIR TOKENOMICS ($HOOD)
The LBP starts at a 95:5 ($HOOD : $USDC) ratio and smoothly decays down to 50:50 over 72 hours.
Dedicated 5% allocation reserved solely for users who were historically victimized by sandwich attacks and toxic slippage over the past 12 months.
- • Dune Analytics verified sandwich attack victims (> $100 MEV lost).
- • Streamed over 6 months via Sablier to eliminate day-one dump spikes.
QUADRATIC YIELD & ARBITRAGE SIMULATOR
COMPARISON & ROADMAP
| Dimension | Generic Tax Tokens | Hood Protocol ($HOOD) |
|---|---|---|
| Value Origin | Taxes user transactions (5-10%) | Captured predatory MEV & liquidations |
| Bear Market Viability | Collapses as volume halts | Counter-cyclical: high revenue in volatility |
| Retail Gas | Users pay full gas | ERC-4337 Sponsored Zero Gas |
| Staking Model | Whale linear extraction | Quadratic √S with Whale APY Cap |
Deploy Sherwood Backrun Searchers on Sepolia. Audit HoodPaymaster ERC-4337 module.
Execute descending 72h Balancer LBP. Distribute 5% to verified sandwich attack victims.
Activate Dutch liquidation searchers across Arbitrum, Base & Optimism with zero-knowledge ID tiers.