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HOOD PROTOCOL
Hood Protocol Logo

Decentralized Finance · Layer 2 Infrastructure

HOOD PROTOCOL

2026

A cooperative "Robin Hood" DeFi layer that extracts predatory MEV & institutional liquidations to sponsor retail gas, backstop slippage, and fund quadratic yield.

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SERIES NO. 01 · FOUNDATIONAL THESIS

EXECUTIVE SUMMARY

01

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.

EXECUTION Gasless ERC-4337 Sponsored
INSURANCE 100% Shield Slippage Refund
STAKING Quadratic Sub-linear √S
SHERWOOD 3D ENGINE
DRAG TO ROTATE
WHALE FLOW [TORUS]
RETAIL VAULT STREAM
Total Intercepted MEV: $14,291,400+
Subsidized Retail Swaps: 1,824,190 tx
Real-time Interceptor Core 60 FPS
SERIES NO. 02 · ASYMMETRIC WARFARE

THE MEV & RETAIL EXPLOIT

02

Today's decentralized finance is tilted heavily toward predatory institutional players who exploit public mempools at the direct expense of everyday traders.

THE MATHEMATICAL REALITY:

Retail trades execute with -EV (Negative Expected Value) due to sandwich attacks, high gas overhead on small swaps, and toxic slippage during volatility spikes.

Modern Robin Hood Maxim:

"Take from institutional dark-pool extractors; stream back to verified human retail participants."

Predatory Segment 90% MEV

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.
Protected Segment HOOD SAFE

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.
SERIES NO. 03 · PROTOCOL ENGINEERING

SMART CONTRACT ARCHITECTURE

03

Select Modular Contract:

HoodPaymaster.sol Gasless Gas Sponsor

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).

MAX SUBSIDY / TX $12.50 USD
STANDARD SLIDING WINDOW 24 Hours
SherwoodBackrunRouter.sol Atomic Searcher Integration

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.

Split Strategy: 70% direct retail gas bank · 10% quadratic yield · 10% buy & burn · 10% protocol insurance reserve.
SlippageGuard.sol On-Chain Loss Backstop

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);

}

Capped Maximum: Up to $50 USDC per qualifying retail swap automatically credited within the same transaction receipt.
MerryMenYield.sol Quadratic Staking Engine

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

Result: Retail stakers receive significantly boosted APY relative to their capital size, while whales are incentivized to provide LP stability.
SERIES NO. 04 · ATTACK DEFENSE

SYBIL RESISTANCE ARCHITECTURE

04
THE BOT DRAIN PROBLEM

How do we prevent bots from draining free gas credits?

TRI-TIER DEFENSE GATING
1 Deterministic

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.

• Age ≥ 30 Days
• 5+ Tx on Arbitrum/Mainnet
• Anti-Mixer provenance filter
2 Privacy Proofs

Modular Identity Attestations

Users seeking higher transaction tiers verify through zero-knowledge or cryptographic proofs without revealing their legal identity.

• World ID ZK-Proofs
• Gitcoin Passport ≥ 20
• EAS Community Attestation
3 Heuristics

Graph Cluster Analytics

Graph indexing identifies wallets funded by common master accounts. Ephemeral farm clusters are instantly flagged and downgraded to standard fees.

• Upstream funding graph check
• 3 swaps / 24h rolling cap
• Max trade size: $2,500/tx
SERIES NO. 05 · VALUE DISTRIBUTION

FAIR TOKENOMICS ($HOOD)

05
Total Supply: 1,000,000,000 ZERO VC CLIFFS
Fair-Launch LBP & Public Pool 40%
Quadratic Staking & Yield Vaults 25%
Protocol Searcher R&D & Keepers 15%
Protocol Insurance Reserve 10%
Founding Contributors (12-mo cliff / 36-mo stream) 10%
TREASURY ARBITRAGE HARVEST (100% MEV Split):
• Retail Gas & Slippage Subsidy 70%
• Quadratic Staker Vault 10%
• Programmatic Open-Market Buy & Burn 10%
• Protocol Insurance Multi-Sig 10%
ANTI-SNIPER LBP MECHANICS Fjord / Balancer

The LBP starts at a 95:5 ($HOOD : $USDC) ratio and smoothly decays down to 50:50 over 72 hours.

Sniper bots cannot front-run the pool because downward pricing pressure punishes early speculators until organic equilibrium is reached.
THE SHERWOOD RETROACTIVE AIRDROP 50,000,000 $HOOD

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.
SERIES NO. 06 · LIVE SIMULATION

QUADRATIC YIELD & ARBITRAGE SIMULATOR

06
Interactive Parameters Real-Time JS
Your $HOOD Stake: 2,500 $HOOD
100 (Retail) 100k (Whale Cap) 250k (Deep Whale)
Daily L2 Volatility Volume: $15,000,000
$1M $40M $80M
Identity Tier Status:
Simulation Metrics Engine ESTIMATED YIELD
YOUR SUB-LINEAR APY (√S) 38.4% +24.1% vs Linear Whale Yield
DAILY PROTOCOL MEV HARVEST $18,750 70% routed to gas/slippage vault
Monthly Gas Sponsored for You: $74.50 USD
Max Covered Slippage / Swap: $50.00 USDC
Annual $HOOD Open-Market Burn: $684,375 USD
Effective Staking Power (√Stake): 50.00 pts
Notice whale dilution: Staking above 100k cap reallocates surplus to retail. √S active
SERIES NO. 07 · EXECUTION HORIZON

COMPARISON & ROADMAP

07
Comparative Advantage Institutional vs Conventional
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
Development Roadmap 2026/2027
PHASE 1: PROOF OF CONCEPT

Deploy Sherwood Backrun Searchers on Sepolia. Audit HoodPaymaster ERC-4337 module.

PHASE 2: FAIR LBP & AIRDROP

Execute descending 72h Balancer LBP. Distribute 5% to verified sandwich attack victims.

PHASE 3: L2 EXPANSION & WORLD ID

Activate Dutch liquidation searchers across Arbitrum, Base & Optimism with zero-knowledge ID tiers.