D2 Finance Bi-Weekly Update

D2 Finance Grant Bi-Weekly Update

Date: Jan 09, 2024

I. Executive Summary:

a) Roadmap Progress

  • D2 Finance has successfully launched the ETH++ Vault with an $80k cap limit. This vault trades within GMX perps and GM farms

  • D2 Finance will launch the Rodeo++ vault next week with $115k cap limit. This vault deploys up to 75% in Rodeo Finance leveraged integration of GM farms complemented by a mix of convex and directional hedges.

b) Milestone/KPI Achievements

  • D2 Finance has successfully met Milestone 2 ahead of the Jan 15 schedule with over $250k notional perp volume traded in GMX from Dec 23 to Jan 09

    • Milestone 2 - Jan 15th - Target TVL 40k , Target Volume 200K in GMX for the period (22 Dec 19Th January):: 12.5k ARB
  • Debank tracking of Vaults

  • ETH++ Secondary market tracking

c) Dune Dashboards

  • The Dune dashboard for reporting will be built starting Jan 10-11 by Shogun (GMX)

II. Current Progress:

  • ETH++ Market launched ($80k cap)

  • Rodeo++ Market ($115k cap) to be announced this week (D2 deploying up to 75% of vault funds into Rodeo GM Leverage farm integration)

    • Rodeo has received ARB incentives from GMX. This makes the opportunity particularly attractive for the duration of these incentives and possibly beyond depending on GM market opportunities.
    • Risk: The delta exposure ranges from +40 to +60% of ETH, which is equivalent to investing in GM ETH. However, it offers less downside risk in tail events due to the convex and directional hedges.
    • Rodeo++ is aligned more conservatively and is designed to yield a smoother return profile compared to direct investments in GM ETH Vault.
  • DSQ token to be sunset Jan 10, voluntary D2 token airdrop to begin Jan 10-15. This is to position to meet regulatory requirements before onboarding for Institutional contacts funds

  • Engaged Hackathon Participants to improve D2 Finance UI / Analytics

III. Community Engagement:

  • D2 Finance welcomes 4 new Rangers. Rangers are token holders with a meaningful stake in the protocol aligned with D2 goals based on mutual interest and economic incentives.


IV. Partnerships and Collaborations:

  • Official Partnership with Rodeo Finance to be announced next week

  • On-going discussion with Dolomite

  • Camelot partnership for GRAIL++ to be announced