[REVIEW] [GF: Phase 1 Proposal] dHEDGE (v2 revised)

Cyrus: I think the updated proposal looks good, and I am OK with it!


I supported this proposal prior and I still support it in its current form.


Salome from Prime Rating here, we were kindly asked by OP community members to support and be active in the evaluation of grant applications. We’re happy to share some of our insights!

dHedge has previously been reviewed on PrimeRating and by DeFi Safety. They received a good technical score of 76% and a decent fundamental score of 63%, resulting in a B+ overall rating (last updated June 16, 2022).

dHEDGE has around $12 million in TVL. $4.29 million in Polygon, $4.2 million in Ethereum and $3.47 million in Optimism. The number of investors giving money to fund managers has experienced a positive trend in dHEDGE, especially since the compatibility with Polygon & Optimism was enabled.

Although the total addressable market is not very big yet, dHEDGE demand also matches the proportion of the whole hedge fund industry on the total asset value of the world, and the demand has also shown signs of growth despite market conditions. In this sense, it appears to have achieved some sort of market fit in an industry with similar growth potential as the whole crypto market. As mentioned in the proposal dHEDGE’s most direct competitor, with the most similar characteristics, is Enzyme Finance which has almost 4 times of dHedges TVL but is not compatible with Optimism yet.

Nevertheless, it has the potential and capabilities to grow in the long term, as they are creating a very compelling alternative to Enzyme. With the right incentives, the chances of more users getting attracted to use dHedge on Optimism are probably high.

Generally in favour of this proposal!


I think this proposal is a big improvement from the last submission, and kudos to the dHEDGE team for taking community feedback. I will be voting yes on this proposal.


I am an Optimism delegate [Delegate Commitments - #65 by mastermojo] with sufficient voting power, and I believe this proposal is ready to move to a vote.


As an Optimism delegate with voting power above the required threshold I believe this proposal is ready. Delegate Commitments - #71 by MoneyManDoug


Thank you @MoneyManDoug and @mastermojo. Will update the roundup post


Appreciate your alignment & deep integrations with the Optimism ecosystem as well as the incorporated feedback - especially the lower ask & less focus on DHT - while retaining the qualities of the first proposal, incl. potentially sticky liquidity incentives & good user onboarding efforts.

PS: Just saw that you planned to add 100% co-incentives in your previous proposal but this time only 30% matching Op liquidity mining incentives. In our opinion, that is still a significant contribution and we prefer to see smaller projects do well & contribute to Op growth, rather than overspend on (co-)incentives.


Hey, I have a few questions regarding your proposal:

Excited about the commitment to migrate governance to Optimism

Could you tell me what the $dhpt token represents? Sorry, I haven’t found any information about it.

Regarding the whitelist metrics (eligibility for $Op rewards):
You state: “Criteria likely to include a minimum TVL and/or over a certain age (weeks).”
Could we clarify/define these parameters?
How much exactly is “a certain age”?
What would be the “minimum tvl” to be eligible?
You indicate: “probably”: it would be interesting if you could define exactly what those criteria will be since it affects 70% of the grant

How do you think fostering the op/dht pool would improve the optimism ecosystem?


Hi @Jadmat.Eth-DefiLatam - thanks for the questions.

Going through in order,

  • the $DHPT token is a token representing a share in any specific dHEDGE Pool. For example $DHPT could describe a share in Stablecoin Yield on Optimisim (this pool however has a specific ticker $USDy)

  • Regarding the criteria for a pool to be whitelisted for staking rewards, a dHEDGE Feature Proposal will be posted in governance to clarify the exact criteria. The first proposal is likely to be a minimum TVL of $20k and pool age of at least 30 days, and this will be subject to a governance vote to pass.

  • Regarding incentivizing the OP:DHT liquidity pair, there is currently no deep source of liquidity on Optimism for the DHT token, and this will be required for efficiently operating dHEDGE governance (accruing governance power, utilisation of staking rewards). A fluid dHEDGE governance program on Optimism is important for the health of the protocol.


In favor. Reasons:

  • Unique product category for Optimism
  • Protocol that can be used to build other protocols, such as dynamic vaults, ie. toros.finance
  • Integrations included in dHEDGE for managers help increase volume and TVL of other protocols, meaning as dHEDGE grows, the ecosystem around it grows with it, (ie. Velodrome, Kwenta, Lyra, Uniswap, etc)

So the whitelist refers to the found, not the token holder? In your example, who should be whitelisted would be Stablecoin Yield, is that correct?

It would be interesting if you could add this to the proposal, do you agree?

I agree to the importance of governance; this is linked to the Stake, encourage an lp seems at first sight the opposite; help me understand the idea

Recommendation from Defi Committee C is Yes


1 Like

Recommendation from the DeFi shadow committee – which is not an official committee – is a conditional yes.

We support this proposal due to signs of specific PMF and the possibility of extending services in a targeted way but have some feedback that would have made it stronger. As it stands, the ask is too vague and discretionary with likely little to show for it in the end.

1 Like

Voted yes - Following Defi Committee C recommendation

1 Like

Voted yes due to the committee C recommendation

1 Like

Vote: Yes

Rationale: After the revisions, we are happy to support this proposal. They have a clear plan on token distribution with co-incentives too.

1 Like

Snapshot vote - passed

@Cyrus can you provide a Telegram handle or other contact method so the Optimism team can get in touch about paying out this grant! Feel free to comment on this thread, DM, or email palash@optimism.io