1/ Observations of a dHedge fund manager
Whilst it has its drawbacks, I find myself interacting with the dHedge platform frequently.
For the uninitiated, @dHedgeOrg is a non-custodial copy trading protocol built on top of the @synthetix_io ecosystem.
app.dhedge.org
Whilst it has its drawbacks, I find myself interacting with the dHedge platform frequently.
For the uninitiated, @dHedgeOrg is a non-custodial copy trading protocol built on top of the @synthetix_io ecosystem.
app.dhedge.org
2/ dHedge's value proposition is simple. It provides a platform for active fund managers to showcase their trading prowess, with a transparent scoreboard for all to see.
Managers can also interact with their investors via public and private posts
Managers can also interact with their investors via public and private posts
3/ Since Mainnet launch in late Oct 2020, dHedge's traction has been growing steadily with ~14m TVL today and over 200 active managers.
Cumulative trading vol on the platform stand at $87m, providing a nice boost to the underlying SNX system as well.
Cumulative trading vol on the platform stand at $87m, providing a nice boost to the underlying SNX system as well.
4/ However there are multiple pain points that will hopefully be solved in 2021.
1. Gas fees are ridiculously high (avg trade costing $50-100)
2. Asset selection universe (being limited by SNX's asset selection is horrendous)
3. Capital inefficiency (underlying assets are idle)
1. Gas fees are ridiculously high (avg trade costing $50-100)
2. Asset selection universe (being limited by SNX's asset selection is horrendous)
3. Capital inefficiency (underlying assets are idle)
5/ If dHedge can get around those pain points, myself as a user would be extremely enthusiastic.
The decentralisation of fund management with increased transparency is definitely a pillar of DeFi that will thrive when the entire ecosystem takes off.
The decentralisation of fund management with increased transparency is definitely a pillar of DeFi that will thrive when the entire ecosystem takes off.
6/ Fundamentally I think that this vertical is very nascent with multiple low-hanging fruits for protocols to significantly grow the total market
In a steady state, I would imagine the market structure to be oligopolistic with incumbents enjoying strong competitive moats
In a steady state, I would imagine the market structure to be oligopolistic with incumbents enjoying strong competitive moats
7/ For now, I am excited to see how dHedge develops.
2 months ago I started my own fund sort of like a side project, and am pleased to see it develop into something meaningful.
If you would like to check it out, click here: app.dhedge.org/pool/0x555d9af…
2 months ago I started my own fund sort of like a side project, and am pleased to see it develop into something meaningful.
If you would like to check it out, click here: app.dhedge.org/pool/0x555d9af…
8/ Disclaimer: This is not financial advice, please DYOR.
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