Some of DeFi’s biggest names, including Framework Ventures and Alameda Research, are supporting the expansion of the dHEDGE decentralised asset management protocol.
Investors and the protocol’s autonomous decentralised organisation (DAO) will collectively invest $1.15 million in an initial cohort of 33 fund managers operating on the platform.
dHEDGE is a non-custodial social trading platform that allows users to choose the asset managers with whom to share their funds. The managers‘ past trading performance is available for scrutiny and is uploaded to a distributed ledger to ensure it remains unchanged. Managers invest using synthetic assets in the Synthetix ecosystem.
The total comprises 651,000 sUSD from dHEDGE DAO, and 550,000 sUSD contributed by investors from dHEDGE Framework Ventures, DeFiance Capital, Divergence Ventures, Mechanism Capital, Klein Blue Capital, and Alameda Research.
Combined with the funds proposed by the fund managers themselves, dHEDGE expects over 1.8 million sUSD to be deployed in their funds in the coming days and weeks.
Speaking to Cointelegraph, dHEDGE’s Henrik Andersson said the team is „very impressed by the list of managers“ overseeing the funds on the platform, noting the presence of Southeast Asian Bitcoin Rejoin-investor NGC Asset Management.
Andersson also noted that the platform houses managers who oversee investments in traditional, non-Kryptonian asset classes, underscoring his enthusiasm for the platform’s growth in 2021:
„Decentralised asset management will become a primitive nucleus in the DeFi space.“
Framework Ventures co-founder Michael Anderson predicted that the next phase of growth for the DeFi sector depends on „bringing in the expertise of financial services professionals and showing them the power“ of decentralised financial protocols.
Looking ahead, Anderson predicted that DeFi will begin to cut back on the market share of „centralised cryptomoney financing“ platforms, which are described as the „dial-up“ Internet of the virtual currency industry:
„The current lending, trading and derivative platforms will begin to be replaced by DeFi platforms. Layer 2 solutions will be seen as the moment of ‚dial-up internet‘ for our industry“.
The investment of dHEDGE DAO is still pending approval by dHEDGE’s native token stakers, DHT, and the closing of the vote on the mobilization of the funds is set for November 27. The investment will proceed if the proposal receives more votes in favour than against.
If approved, the proposal will see DAO match the investments made by 17 of the fund managers, including two sums of 100,000 sUSD each, and 15 investments of between 10,000 and 50,000 sUSD. Another 10,000 sUSD will be distributed to 16 other fund managers each.