Some of the biggest names in DeFi, including Framework Ventures and Alameda Research, support the expansion of the dHEDGE decentralized asset management protocol.
Investors and the Decentralized Independent Protocol Organization (DAO) are investing a combined $ 1.15 million in an initial pool of 33 fund managers running on the platform.
dHEDGE is a dishonest social trading platform that allows users to choose asset managers to collect their money with. The directors’ previous performances are revised and uploaded to a distributed ledger for consistency. Managers invest synthetic assets in the Synthetix ecosystem.
A total of $ 651,000 from dHEDGE DAO and $ 550,000 was contributed by dHEDGE Investments Framework Ventures, DeFiance Capital, Divergence Ventures, Mechanism Capital, Klein Blue Capital and Alameda Research.
Combined with funds provided by the fund managers themselves, dHEDGE expects that over $ 1.8 million will be invested in the pools in the coming days and weeks.
In an interview with Cointelegraph, Henrik Andersson from dHEDGE said that the team was “very impressed with the list of managers” who oversaw the platform’s management team, noting the presence of crypto investor NGC Asset Management in Southeast Asia.
Anderson also noted that the platform employs executives who oversee investments in the original, unencrypted traditional asset classes, and highlights his enthusiasm for the platform’s growth in 2021:
“Decentralized asset management should be the main product of the DeFi space.”
Michael Anderson, co-founder of Framework Ventures, predicts that the next phase of growth for the DeFi sector will depend on “leveraging the expertise of financial services professionals and demonstrating the power” of decentralized financial protocols.
Looking ahead, Anderson expects DeFi to begin shrinking market share for “centralized cryptocurrency financing platforms”, which are described as the telephone network for the cryptocurrency sector:
“Existing loan / lending and trading platforms and derivatives will be replaced with new DeFi platforms. Layer 2 solutions will be seen as the “broadband connection moment” in our industry. ”
The DHEDGE DAO investment is still awaiting approval from the manufacturers of the original DHT DHEDGE token, and a vote on whether to raise funds due to the closure on 27 November. The investment will continue if the proposal receives more votes for than against.
If the proposal is approved, DAO will be weighed against investments made by 17 fund managers, including two amounts of $ 100,000 each and 15 investments ranging from $ 10,000 to $ 50,000. An additional $ 10,000 will be distributed to 16 other fund managers.