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
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.
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)
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.
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
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.
Right now ~$2.3bn funds are deployed farming UNI, with $ETH being the reference token.
This means that there is currently ~$1.1bn ETH locked up, about to be released into the wild.
Where do you think that ETH will go?
2/ Whilst a large portion of current TVL will stay in the same pools (fees generated are juicy), I posit a reasonable amount of ETH will leave the Uniswap system in search of higher yields.
Nobody knows numbers at this point but 50% of TVL leaving may be within reason.
3/ If this holds true, ~$500mm ETH will be on the market. They can:
A): Stake elsewhere ($SUSHI/$ALPHA/ETH 2.0 etc)
B): Remain in holder wallets (unlikely)
C): Be sold for stables / altcoins