Tap in Tuesday: dHEDGE V2 AMA
dHEDGE asset management is turning heads with their upcoming V2 Launch. We dive deep into the improvements; including L2 deployment and GOAT integration.
DeFi Slate Fam:
It’s been an absolutely rockin week so far.
After the recent lull in action, volatility is returning to crypto. Driven by rumors of Elon and Amazon involvement, we saw a strong surge in Bitcoin and Ethereum past 40k and 2k respectively. As of writing, these are about 25% moves in the past week but who’s counting?
Our degen community is a diverse crowd with a wide range of skill levels when it comes to DeFi. For the more passive degen, you’ll like what’s coming next.
Decentralized Asset Management leverages smart contracts for a noncustodial approach to following the top performing traders. dHEDGE has multiple pools with >100%ROI (including our own DeGen pool) and a dTOP index which aggregates the top 10 pools on the platform.
Learn about all the improvements to dHEDGE’s system below:
High-Yield Savings Account & Leverage Your Assets with Aave.
Non-custodial money market protocol leading the #DeFi charge.
dHEDGE V2 AMA
1. Why dHEDGE?
dHEDGE is democratizing the asset management industry. dHEDGE platform harnessed the properties of permissionless public blockchain and smart contract to build a non-custodial hedge fund type of marketplace. It’s a crypto innovation of the asset management space which traditionally had very high barriers of entry from legal and financial point of view.
2. What is the decentralized vs centralized asset management debate? Is the decentralized/non-custodial route the better of the two?
Great question, the key benefits of decentralized asset management is that you can have non-custodial permissionless asset management products. This gives access to managers that would otherwise not be able to start a hedge fund vehicle. Having said that, the centralized asset management space is significantly older. It has an ecosystem that is more developed than it’s decentralized counterpart. That manifests in the variety of financial products and instruments that centralized hedge funds can work with.
3. What is the future of dHEDGE/Ethereum DeFi on L2?
L2 addresses some of the most pressing needs the community is currently challenged by, namely gas fee surge and transaction throughput. dHEDGE’s products as well as several other DeFi products are seeing a utility decrease due to gas costs. Many actions in DeFi are prohibitive from a gas cost point of view. A simple example on dHEDGE: Pools that don’t handle a sizable AUM it becomes unreasonable to take positions as gas fees can be very steep.
4. What new opportunities are available with dHEDGE v2?
dHEDGE V2 is a completely new product, the dHEDGE DAO contributors worked hard to develop pools capabilities beyond Synthetix and beyond L1. We’ve developed a robust smart contract integration framework called Guarded Open Access Transaction (GOAT). This allows dHEDGE to integrate DeFi protocols quickly in a similar way to how Gnosis Safe allows users to interact with dapps through the multisig interface. dHEDGE V2 will be deployed on multiple EVM compatible chains. The first chain will be the Polygon network and provide access to SushiSwap, this will open yield farming and other possibilities that were previously not available on dHEDGE.
5. How do you handle the onboarding of institutional asset managers who aren't aware of using metamask, DeFi, and non-custodial solutions like dHEDGE?
DeFi can indeed be a steep learning curve for those who aren’t crypto natives. So far it’s been mostly the crypto community and crypto native institutional funds. We haven't seen many n00bs starting their journey straight to dHEDGE. In general the quality of UX on all fronts is improving consistently, so we’ll probably reach a day that even those who aren’t experienced will be able to join the DeFi train with dHEDGE :)
6. What are the benefits of using Synthetix as the underlying liquidity pool for dHEDGE users?
One of the main benefits of using Synthetix was the fact there is no slippage no matter what is the size of the trade taken.
7. Where does dHEDGE fit in the grand vision of DeFi to bank the unbanked, provide better opportunities than TradFi, and give everyone an equal playing field?
Core value proposition for dHEDGE is that it democratizes the asset management space, in the TradFi space, it can take years for someone to build reputation and capital resources in order to be able to raise a fund and manage capital. With dHEDGE, anyone with an internet connection can start a non-custodial pool and if their performance is consistently great, it’ll be on-chain verifiable and thus will be identified easily. This in turn can attract investors from all corners of the world pseudonymously. The beauty is that it’s leveling the playing field by creating a culture of meritocracy that is verifiable on-chain!
8. As far as expectations go, after the v2 launch, what is the goal for total TVL in dHEDGE?
Pool managers on dHEDGE will be delighted to manage more capital, with the current TVL being at the scale of some dozens of million USD, crossing the $100-500m would be nice to achieve as a milestone for the dHEDGE DAO.
9. How do new managers ascend the leaderboard in dHEDGE rankings?
A new pool needs to be active for 28 days to calculate a Score.
The default ranking of the Leaderboard is based on this Score and is calculated as follows:
Score = Sortino Ratio * SQRT(7 Day Average Pool Value)
Sortino Ratio measures risk-adjusted returns and is calculated from the time of the funding of the pool and is annualised. The target return in the Sortino Ratio formula is set to 20%. The Sortino Ratio calculation has been modified to incorporate a pool's historical relative size. This means that more emphasis is put on performance figures when the total value of the pool is larger vs. smaller.
10. What is your favorite NFT collection?
One of our favourite collections is K21 (k21.kanon.art), an art vault of 21 unique and original NFT artworks by established and emerging art world luminaries. In the short future we are looking to incorporate NFTs in dHEDGE as well!
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⚠️ DISCLAIMER: Investing into cryptocurrency and DeFi platforms comes with inherent risk including technical risk, human error, platform failure and more. At certain points throughout this post, we might get commission for promoting certain projects, if this is the case we will always make sure it is clear. We are strictly an educational content platform, nothing we offer is financial advice. We are not professionals or licensed advisors.
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