Grow Your AUM and Income with Referrals
In today's competitive market, it is challenging for any business to stand out. It's essential to have a well-structured marketing strategy that can help attract new capital and promote your vault to potential users.
However, not all managers have the necessary time and resources to do so. With dHEDGE's new referral program managers can attract new depositors and incentivize others to bring new users to the dHEDGE ecosystem.
In this blog, we will discuss the intricacies of setting up a referral program for a vault and how it can help managers focus on their management skills while still growing their vault.
As a manager, the first step in setting up a referral program for your vault is to enable it in the User Interface (UI) within the Manager webpage of your vault.
Once enabled, you can set what percentage each referrer will earn per referral if you have performance fees enabled. Similarly, if you have management fees enabled, you can set the percentage that the referrer will earn per referral.
It's essential to note that the manager can set either performance fee, management fee, or both, for paying referrals. If you choose to do both, the manager must set up both independently.
50% of a 20% Performance Fee would mean the refferer would receive half of the Performance fee for users they have reffered to the vault.
(0.5 0.2) = 0.1 Performance Fees (10%)
50% of a 3% Management Fee would mean the refferer would receive half of the Managert fee for usersthey have reffered to the vault.
(0.5 0.03) = 0.015 Management Fees (1.50%)
When a depositor uses a referral link to deposit in a vault, dHEDGE tracks the unique URL containing the referrer's wallet address. Once the deposit is successfully completed and a user's wallet address has been tagged to a referrer’s wallet address, all subsequent deposits by this depositor into the same vault are considered in the referral program's fee share.
Each depositing address can only have one tagged referrer wallet address per vault, and will be considered as the first referrer address dHEDGE receives for that depositor. If a user who is already tagged to a referrer uses someone else's referral link, their investments would still be associated with the original referrer's wallet address.
This means if a user who is already tagged to a referrer uses someone else's referral link, their investments would still be associated with the original referrer's wallet address. To establish a new referrer wallet address with the same depositor, a new depositor wallet will need to be used, and that will need to be linked to another referrer address. The share of the Vault's management and performance fees would subsequently be distributed to the initial referrer's wallet address.
[VAULT_ADDRESS] = Vault being deposited into
[REFFERER_WALLET_ADDRESS] = Where the share of fees is to be sent
Note: dHEDGE fees (both management and performance) are minted as new shares of the vault that earned them.
Fees from minting both performance fees and management fees are tracked individually per depositor per vault with a referrer. For the referral fees, dHEDGE tracks what percentage from those fees the referrer will receive. This fee sharing occurs at any fee minting event and also recorded on-chain.
dHEDGE is in the works of building a referral dashboard for influencers and marketers to easily track various referrals across vaults. Referrers will be able to view how much fees they've received, which addresses have come through them, how many fees that accrued but not been claimed, and even a calculator for total capital captured.
By implementing the referral program, a manager can incentivize others to market their vault for them, allowing them to focus on their management skills rather than marketing.
For private Pools participating in the referral program, there are no worries of unwanted referrers, as only whitelisted addresses can still deposit. The program will look similar to other vaults, but not function in the same way in that not anyone can refer depositors.
Once a referral program has been enabled for a vault, users will see this blue text on their vault’s landing home page within the dHEDGE app. This will allow any connected wallet to the app to instantly click this link and become a referrer of that vault.
This instantly creates a potential or already user into a marketer who can not only share this link with others, but also participate in the growth of dHEDGE DAO.
Users who do click this link will participate in fee sharing equal to what the manager has established for that vault.
Want to refer Toros vaults you enjoy to others? Now that's also possible. See which vaults below you can become a referrer of and earn a share of those fees for doing so. Grow with dHEDGE!
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,