Q2 2022 was unfortunately notable for some hugely significant DeFi catastrophes; such as Terra/Luna imploding, the insolvency of Three Arrows Capital, Celsius locking investor funds, increasing FUD around the stability of Tether, and knock-on effects to the rest of the ecosystem caused by any or all of the above. It’s been a truly diabolical period.
In addition, the ecosystem moved squarely into bearish conditions, with ETH plunging from $3,500 at the start of April down to $1k by the end of the quarter.
The dHEDGE strategy has been to continue "building through the bear", which has been demonstrated by myriad product releases, upgrades and developments.
Over the last quarter, dHEDGE has shipped the following significant product improvements.
Starting with the dHEDGE Moonlight release back in April, dHEDGE integrated Aave v3 for managers on Polygon and Optimism, in addition to also adding 1inch on Optimism.
Additionally, dHEDGE enabled managers to charge a flat management fee in addition to a performance fee, enabling managers to have more control on income.
NFT Whitelisting was added to help managers provide innovative access to private pools. Instead of manually whitelisting investor access to a private pool, a manager can identify a specific NFT collection (or create one themselves) to be used as an access method to a private fund.
Single Asset Withdrawal was also added under Moonlight, enabling investors to have complex positions unwrapped into a single token on leaving a pool.
Meanwhile, the Toros team was building throughout, releasing significant new product developments including launching Toros on Optimism as part of the Escape Velocity release.
Bringing Toros to Optimism has opened up significant new opportunities, especially related to the release of the dSNX Synthetix Debt Hedging service - providing Synthetix stakers with a simple, innovative hedging solution to avoid debt exposure surprises on unstaking.
The dSNX service has driven a significant increase in TVL and transactions on Optimism, shown here as total transactions per day increasing significantly over the quarter:
In this quarter Toros also launched two new Dynamic Vaults: a Bitcoin yield service BTCy, and a managed ETH liquidity service mlETH.
The Toros team also brought the Stablecoin Yield service to Optimism, taking advantage of dHEDGEs Uniswap v3 integration to manage concentrated stablecoin liquidity. Since launch, the service has been earning fees across DAI-USDC, and currently sUSD-DAI.
The hunt for stablecoin yields also saw the dHEDGE team integrate Arrakis Finance, moving the Polygon Stablecoin Yield liquidity into the incentivized USDC-USDT pool whilst the MATIC incentive program was running.
Finally, the ongoing debate around the ability of Tether to honour redemptions saw Toros build out and launch a leveraged short Tether Dynamic Vault, providing holders with a simple method to earn returns in the case where Tether depegs.
Also in this quarter many significant changes have been made to the UI. Including better leaderboard sorting with extra filters to easily search and find good performing, actively managed pools. The default filters will bring the best dHEDGE pools to the forefront.
Rounding out the quarter, the team released a proposal for a new DHT staking model, proposing to direct staking rewards to users staking both DHT and dHEDGE pool tokens. This proposal aims to add utility to the DHT token by using it as a vehicle to boost specific pool performance returns, in addition to governance power.
It’s the first upgrade to the staking model since performance mining was introduced, and will be put to the DAO to vote on shortly.
Another proposal was posted earlier this week to integrate Lyra Finance, which if passed will open up multiple new channels for growth: managers on dHEDGE will get access to Options trading within their pools, and Toros will be able to build new automated Options strategies as Dynamic Vaults.
Speaking of Toros Vaults, a new dynamic vault USD hedged yield (delta neutral) will be live in the coming weeks.
Soon to be released is the ability for users to deposit native assets directly into any pool - e.g. MATIC on Polygon pools, and ETH on Optimism pools. Providing convenience for users to not have to swap into a specific asset required by a pool manager before depositing.
Also coming up is a yet to be announced new referral program, providing dHEDGE managers the ability to allocate portions of their management fees to users who refer new investors to their pool. More on this new referral program coming shortly, stay tuned for more updates.
More About dHEDGE
dHEDGE is a decentralized asset management protocol connecting the world’s best investment managers with investors on the blockchain in a permission less, non-custodial, trustless fashion. dHEDGE aims to democratize the investing experience leveraging Blockchain technology.
Supported by some of the biggest names in crypto, including Framework Ventures, BlockTower Capital, DACM, Maple Leaf Capital, Cluster Capital, Lemniscap, LD Capital, IOSG Ventures, NGC Ventures, Bitscale Capital, Divergence Ventures, Genblock Capital, Trusted Volumes, Altonomy, Continue Capital, The LAO, bitfwd (比特未来) and Loi Luu, Co-Founder and CEO of Kyber Network,