dHEDGE V2 Optimizes the Decentralized Hedge Fund Experience

William Peaster
Oct 07, 2021
|4 minutes read

dHEDGE is a decentralized asset management protocol that is permissionless.  This allows users to create or invest into non-custodial, on-chain hedge funds. In this way dHEDGE serves as a one-stop dapp for connecting talented investment managers with investors from around the world, all in trustless and democratic fashion atop Ethereum.

Since launching V1 in Q4 2020, dHEDGE DAO has made considerable strides, like reaching +$40M in total value locked (TVL) back in May and facilitating +$500M in total manager trading volume to date. Yet this is just the start, as the dHEDGE team has been hard at work for months preparing an optimized V2 system that will offer users considerable flexibility.

With Certik’s audit of the core dHEDGE V2 contracts completed and the finishing touches completed, the launch of the new-and-improved dHEDGE protocol has arrived. Accordingly, let’s recap the key advances now at our fingertips courtesy of the V2 release.

V2: next-gen decentralized hedge funds

dHEDGE V2 is all about giving managers and investors more options when it comes to how they want to use and manage their money. This comes in the form of expanded opportunities derived from supporting new assets, pools, and scaling integrations.

At the heart of the V2 protocol is dHEDGE’s new Guarded Open Access Transactions, or GOAT, framework. A Gnosis Safe-like system, GOAT gives the dHEDGE community the ability to easily integrate protocols, and thus new tokens and yield farms, without having to create additional bespoke user interfaces from scratch. This mechanism paves the way for dHEDGE V2 supporting futures, options, yield tokens, and other DeFi assets that V1 didn’t. 

Moreover, another major evolution with dHEDGE V2 is the protocol’s ability to readily foster new pool types. Barring use of the Fox Swap innovation, V1’s pools centered around Synthetix’s U.S. dollar synth, sUSD. This all changes in V2, which allows managers to open up pools with assets beyond sUSD.

Not only that, but you’ll also be able to open up pools on additional chains and scaling solutions beyond Ethereum courtesy of V2’s cross-chain support. Out of the gate dHEDGE V2 is deploying to the Polygon sidechain with integrated support for Sushi’s Polygon deployment, and more protocols on Polygon will be integrated in the coming weeks. 

Moreover, V2 has also been whitelisted for Arbitrum’s optimistic rollup layer-two (L2) implementation, and dHEDGE is also eventually interested in supporting Synthetix and Uniswap’s deployments on the Optimism L2. All additional integrations will be contingent on audits being completed, so expect melds with new EVM-based chains on a rolling basis.

These sidechain and L2 solutions are key for V2, as at times demand and gas surges on the Ethereum L1 made V1 unfriendly to smaller investors. With these new multi-chain scaling integrations, dHEDGE V2 offers near-instant and essentially gas-free transactions while giving users the advantage of having a range of different L1s and L2s to choose from.

More utility, better UX

DHT is the governance token of the dHEDGE project. Thus DHT is central to the functioning of the ecosystem, yet in dHEDGE’s initial protocol the token didn’t have much utility beyond staking. dHEDGE V2 is aiming to change this by angling to support borrowing against staked DHT and by expanding the project’s performance mining rewards to also go to DHT stakers. 

Notably, the V2 system will also eventually enjoy an integration with TradingView, the popular social network for traders. V2 accordingly lets managers create limit orders and additional signals for their funds directly through TradingView, with all ensuing actions completed by dHEDGE’s custom-built TradingView bot. 

Learn more about dHEDGE

dHEDGE V2 is going to keep adding new assets and chains over time, so to keep up to date with these developments consider following dHEDGE on Twitter or diving deeper into the project’s Discord or Telegram.

Disclosure: This post is part of our paid promotional DeFi Pulse Partner Program. We’ve partnered with the dHEDGE DAO to help educate and inform the wider crypto community about dHEDGE. As always, we’re committed to providing all readers with quality, objective information, and any opinions we express are our own.

Related Posts