What The Fuck Is..... dHedge DAO
dHedge is focusing on decentralizing and offering permissionless conventional asset management services. Besides adopting the idea of robo advisors, it adds a community and allows anyone on the globe to become the robo. You also won’t hand over your capital.
Generally, the objective falls in almost perfect alignment when it comes to the rest of Defi. This is to eliminate the middle man and for everyone to participate.
Furthermore, the team behind dHedge is making another special bet on Synthetix. The whole protocol is created on this Defi darling, which also means that it has bootstrapped an active community in modern crypto and a crypto token to boot.
What Is dHedge?
It is a non-custodial and decentralized asset management network for synthetic assets on Ethereum. You might be wondering what these terminologies mean. Here’s a breakdown.
1. Non-custodial. The users have ownership of their funds. The investor funds are also secure because the investment managers can’t run away with them.
2. Decentralized asset management. Generally, dHedge focuses on building a permissionless and unstoppable protocol when it comes to asset management.
3. Synthetic assets on Ethereum. Typically, Synthetix derivatives liquidity protocol usually powers this network’s portfolios.
dHedge acts as a one-stop destination that helps to manage investment activities when it comes to the Ethereum blockchain - where you could put your funds to work in various strategies while maintaining a transparent track record.
There are multiple functions for the dHedge token (or DHT), including:
- Incentivize different investors to pool assets with reliable managers
- Support decentralized governance
- Incentivize managers to make a substantial return
With DHT, one distinct value proposition is that holders might decide to request an administration fee on the network’s platform. In September 2020, DHT held its token generation event (TGE). And the fixed total supply will be at 100,000,000 DHT. The fee’s specifics will be established by DHT tokens and is presently at 10%. Direct investment from the DAO and the admin fee are collected in a smart contract. The DAO is like a pool of pools. Through staking, any DHT holder can make some choices governing this DAO, e.g., with liquidations or reallocations.
True to the ideals of decentralization and community ownership, there is a high likelihood that the total supply might change down the line in case DHT holders come to an agreement that this is the most suitable course for the dHedge protocol. Any alteration to the supply schedule may demand considerable and compelling motivation. As a result, it is not expected that the total supply will be changing any time soon, if ever.
It would also be better to decentralize more and more sections of the protocol as it matures. And the primary objective of this progressive decentralization is to have experiences and products that users demand first before even thinking of attaining the decentralization of every aspect of the protocol.
Keeping this in mind, much decentralization will be needed for dHedge to get its full potential as a non-custodial, censorship-resistant, trustless, and unstoppable trading platform on Ethereum. 0xca1207647Ff814039530D7d35df0e1Dd2e91Fa84. is the DHT token address.
What Makes dHedge Exciting?
Transparency is the priority on dHedge. There is complete visibility when it comes to the pool managers’ track record and trading activity. It also allows self-custody. That means that investors may keep custody and overall control over their particular positions. You can also withdraw anytime and not according to external schedules.
Because managers on this platform are thoroughly evaluated across many metrics, there exists competitive performance as well as strategy and risk that investors consider when allocating funds.
Investors could also earn additional rewards when it comes to native DHT tokens for participation in dHedge pools. On Gnosis Safe, you can find the dHedge app that enables DAOs to manage multiple investments using multi-sig.
Here’s what distinguishes dHedge from other platforms:
- Rather than parting with your crush through a robo-advisor or paying decentralized managers, dHedge decentralizes and eliminates the middleman in asset management.
- dHedge is supported by well-recognized Defi investment funds and it consists of a team with vast experience in blockchain development as well as traditional finance.
The dHedge Token and Governance Model
The dHedge ecosystem will generally be powered by its native token, DHT, and a decentralized autonomous organization (DAO). The DAO primarily deals with the development and ensuring smooth running governance. This shows that the team is implementing the necessary measures of decentralization from the starting line.
Originally, governance participants can only vote on certain issues and the others will mostly be enforced with strict off-chain consensus. This is but a commonplace with nascent protocols. Besides, dHedge is not yet live on mainnet.
dHedge’s token will begin with a fixed supply of 100,000,000 tokens. These tokens will be offered to the protocol’s active users via a liquidity mining approach to reel in adoption.
Nonetheless, dHedge’s token supply is usually subjected to community consensus. Although it is rare for it to occur anytime soon, any governance participant may vote to create more tokens.
Who Is On the dHedge Team?
Some of the most fast-growing funds support the dHedge project in crypto. Furthermore, betting on dHedge implies that a fund is bullish on the actual team behind the SNX token and Synthetix. For example, Framework Ventures is the biggest holder of SNX and Chainlink’s LINK apart from the founding team members and exchanges.
What’s more, some of these funds are extremely active when it comes to the broader Defi space. They participate in hands-on yield farming, as well as governance proposals for different projects. With this variety of expertise, backing a permissionless and decentralized asset manager aligns perfectly.
Apart from helping lead dHedge, Henrik Andersson possesses a great track record as a reputable asset manager when it comes to traditional finance. As of now, he is the acting CIO of Apollo Capital. They won an accolade back in 2019 for Crypto Fund Research’s Top Performing Multi-Strategy Crypto Fund.
To further bolster the dHedge team’s technical side, Ostrowski comes with a rich history of blockchain development and data engineering. He has also founded multiple crypto-related firms, such as RelayPay and Startonchain.com.
Apart from being a co-founder of Upstreet, Nurovic also helps to improve the technical chops on dHedge as a systems engineer. Since all three of them come from Australia, they add credence to a new kind of “Defi valley” that is arising in the land Down Under.
For the sake of the community, much of the activity is occurring on the Discord channel - this has ballooned after the launch of the trading competition.
Who Funds dHedge?
dHedge, a decentralized asset management platform, has achieved expansion support from some of the largest, well-recognized companies in the Defi field, including Alameda Research and Framework Ventures.
According to various reports, DAO along with the company investors will invest $1.15 million in the platform’s fund managers. In the initial stage, there will be 33 managers working on the platform. DAO is actually the protocol’s decentralized autonomous organization.
And according to Henrik Andersson, the company is satisfied with the managers who are looking over the pools on the network. Henrik Andersson also added that the network has the ability to host managers looking over the investments in both traditional and non-crypto-native asset classes.
When it comes to funding, the platform’s DAO had contributed $651,000, which was followed by $550,000 from Framework Ventures and other investors such as Mechanism Capital, Divergence Ventures, DeFiance Capital, Alameda Research, and Klein Blue Capital.
dHedge also expects 1.8 + million in capital apart from the present capital which is to be deployed throughout its pools in several weeks. However, the investment by the platform’s DAO has not yet received a green signal from the stakers of the platform’s native DHT token. In case the approvals are granted, the development expects the DAO to align with the investments performed by 177 fund managers. In case of a successful approval, it will see a distribution of an extra $10,000 to each fund manager.
How to Participate in the dHedge Network
Here’s a step-by-step guideline on how to take part in this platform.
Invest in a dHedge Pool
To invest your funds in a dHEDGE portfolio, head over to the Leaderboard tab in dHEDGE and find a pool that you’d like to invest in. Here, you can select a given pool to learn more about what assets are included, who the pool manager is, and the pools trading history.
Once you’ve found a pool you’d like to invest in, visit the pool page and find the “Invest” option near the top of the page and input the amount you’d like to invest. Your invested funds will fluctuate based on the return rate of the portfolio. To monitor your investments, visit the My Investment tab.
Start Your Own dHedge Pool
You can start your own portfolio on dHEDGE, simply visit the “Manage Pools” tab and select “Create Pool”. There is no minimum fund size that you need to invest to create a pool, and if you're feeling ambitious, you can create as many pools as you wish!
Once you're in the "Create Pool" page, you'll be invited to name your pool, choose the investor fee, and pick the asset(s) you want to manage in your pool.
By creating your won pool, you can adjust your exposure to the Synths you selected in the “Manage Pools” tab. As you manage your fund, more people may invest, which will push you way up the leaderboard and attract additional investors. Go have some fun on this excited and multifaceted platform!