dHEDGE Grant Update for Governance Fund Phase 1 - Cycle 6

Initial Phase 1 Cycle-6 Proposal dHEDGE DAO

Passed vote on Sep 29, 2022

Total OP: 350,000

We are pleased to submit this updated progress report for dHEDGE as a recipient of a grant from the Optimism Governance Fund Phase 1 in Cycle 6. Our team has been working diligently to fulfill the goals set out in our initial proposal, and we are excited to share our progress thus far.


Since the beginning of the grant period, dHEDGE has experienced significant growth on Optimism in terms of Total Value Locked (TVL) and daily transaction volume. Our successful integration with other Optimism protocols, including Aave, 1inch, Kwenta, Uniswap, Velodrome, and Lyra, has allowed for increased synergy within the Optimism ecosystem. Our incubated protocol, Toros Finance, has also experienced rapid adoption and growth.

A significant development has been the acquisition of mStable by dHEDGE. This strategic move not only strengthens our position in the DeFi space but also signals our unwavering commitment to build on Optimism. As a result, we have introduced a new roadmap that establishes Optimism as the foundation for mStable. This roadmap includes the development of innovative yield products and bridging the MTA token to Optimism, further reinforcing our dedication to the Optimism ecosystem.

Key Metrics as of April 21st:

TVL: $23.5 million (an increase from $4.3 million) – 10th Highest TVL on Optimism.

Transactions since incentives began: 315 avg transactions per day

35% of the DHT circulating supply has been bridged from Ethereum L1 onto Optimism – 14,500,000 Tokens. Using a DHT price of $0.19, this equates to $2,755,000

Token Distribution:

We began distributing the granted OP tokens in mid-January 2023. The Vault incentives started on January 18th, 2023, and the Velodrome bribing began on February 2nd, 2023. This distribution strategy has been effective in attracting more liquidity to dHEDGE vaults and encouraging the growth of the OP:DHT pool on Velodrome.

Project Highlights:

  • Vault Incentives Program: Launched on January 18th, 2023, this program aimed to attract an additional $7.1 million in TVL to dHEDGE Vaults. As of April 21st, the TVL has grown to $23.5 million, greatly surpassing the goal.

  • Velodrome OP-DHT Pool: The goal was to attract $1.2 million in TVL. As of April 21st, the TVL reached $1.2 million. 27,568 OP tokens have been used to incentivize this pool.

  • Treasury Migration: dHEDGE has successfully migrated most of its treasury onto Optimism, further demonstrating our commitment to the Optimism ecosystem.

  • dHEDGE Governance Migration to Optimism: Successfully completed on March 29th, 2023, resulting in a significant amount of DHT bridged from Ethereum L1 onto Optimism.

As of April 21st, 135,188 OP tokens have been distributed to support the growth of dHEDGE on Optimism. This represents around 40% of the total OP tokens received. This figure is slightly lower than the planned distribution thus far, mainly due to the increase in the price of OP tokens. When our proposal was approved, the price of OP was $0.91, but it has since risen to $2.48. This increase in value allows us to distribute fewer OP tokens while still providing substantial incentives to our users.

We continuously monitor the distribution of OP tokens to ensure that they are allocated effectively and responsibly to drive the growth of dHEDGE within the Optimism ecosystem. Our focus remains on attracting more liquidity to dHEDGE vaults and encouraging the growth of the OP:DHT pool on Velodrome.

dHEDGE has also been buying OP tokens from the open market to facilitate the seeding and growth of protocol-owned liquidity on Velodrome. To date, we have purchased a total of 73,841 OP tokens - 19,873 via the DHT Liquidity Vault and 53,968 for seeding purposes.

Moving Forward:

In the coming months, we plan to continue our growth trajectory by expanding our integrations, exploring additional partnerships, and enhancing the overall user experience on dHEDGE. Our goal remains to build a future where everyone has simple and reliable access to financial freedom, in alignment with the Optimistic Vision.