Some of the biggest names in DeFi, including Framework Ventures and Alameda Research, support the extension of the decentralized asset management protocol dHEDGE.
The investors and the decentralized autonomous organization of the protocol (DAO) will jointly 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 asset managers to pool their money with. The managers’ past trading performance is available for research and uploaded to a distributed ledger to ensure immutability. Managers invest in the Synthetix ecosystem using synthetic assets.
The total includes 651,000 sUSD from the dHEDGE DAO and 550,000 sUSD contributed by dHEDGE investors Framework Ventures, DeFiance Capital, Divergence Ventures, Mechanism Capital, Klein Blue Capital and Alameda Research.
Combined with the funds suggested by the fund managers themselves, dHEDGE expects to deploy more than sUSD 1.8 million in its pools in the coming days and weeks.
Speaking with Cointelegraph, dHEDGE’s Henrik Andersson said the team is “very impressed with the selection of managers” overseeing the pools on the platform, noting the presence of Southeast Asian crypto investor NGC Asset. Management.
Andersson also noted that the platform houses administrators who oversee investments in traditional, non-crypto-native asset classes, highlighting his enthusiasm for the platform’s growth in 2021:
“Decentralized asset management will become a primitive core in the DeFi space.”
Framework Ventures co-founder Michael Anderson predicted that the next phase of growth for the DeFi industry will depend on “bringing in the expertise of financial services firms and showing them the power” of decentralized financial protocols.
Looking ahead, Anderson predicted that DeFi will start to shrink the market share of “ centralized crypto financing platforms ” – describing, for example, the dial-up internet of the virtual currency sector:
“Existing platforms for borrowing / lending, swapping and derivatives will be replaced by DeFi upstarts. Layer 2 solutions will be seen as the ‘dial-up to broadband’ moment for our industry. “
DHEDGE DAO’s investment is still pending striker approval of dHEDGE’s proprietary DHT token, and a vote is underway on whether or not to mobilize the funds to close on Nov. 27. The investment will go ahead if the proposal gets more votes in favor than against.
If the proposal is passed, the DAO will match the investments made by 17 of the fund managers – including two amounts of 100,000 sUSD each and 15 investments between 10,000 and 50,000 sUSD. Another 10,000 sUSD will be distributed among 16 other fund managers each.