D2 Finance: ETH++ Market Launching on Camelot
We are extremely excited to introduce ETH++ and to further strengthen our partnership with Camelot by launching a secondary market for one of our flagship vaults.
In addition, D2 Finance is receiving a GMX grant aimed at incentivizing the ETH++ vault (and other upcoming vaults) for utilization of GMX in its trading strategies. D2 is fully compliant with all the terms of the grant program required for the distribution of ARB.
For more details on the grant and the milestones to be met, visit https://gov.gmx.io/t/open-grants-d2-finance/2632/1.
Before we dive into the ETH++ launch on Camelot, let’s quickly review the details about D2 Finance and the ETH++ vault
D2.Finance brings the sophistication of a top-tier hedge fund on-chain, while being fully non-custodial.
- D2 Finance has been meticulously designed to simplify the intricacies of decentralized finance strategy management and digital asset exposure. It provides a streamlined, one-click solution for effortless and safe deployment of risk-adjusted strategies. The primary market is reserved for whitelisted addresses who understand the sophistication and risks behind the strategies.
- The core of D2 Finance’s innovation lies in its back-end custom and fully audited smart contract architecture, supplemented by an off-chain risk-management layer and a custom OMS (Order Management System) atop the trading engine.
- This engine has been developed by our team of professional portfolio managers and traders, who will later employ a similar “pods model” to various firms like Millennium, Citadel, Brevan Howard, etc., and have a proven multi-year track record.
Each of our options-based vaults employs a distinctive trading strategy, meticulously designed and dynamically adjusted to take advantage of diverse market inefficiencies, all within our professional risk management infrastructure
ETH++ Vault
The ETH++ Vault is targeted at the multi-year growth potential of ETH with a smoother return profile and lower downside delta exposure.
Strategy: Trades ETH, and related derivatives (including other blue chips tokens)
Goal: ETH++ allocates on a risk-adjusted basis for the long run and employs arbitrage strategies when market opportunities arise
Risk: Delta exposure is -20 to 200% of ETH, but averages lower downside volatility than ETH due to efficient use of optionality
ETH++ is more conservatively aligned and is designed with a smoother return profile than our other vaults
Duration: Monthly
D2 Vault Segregation
Vaults are owned and controlled by a 5/7 Multi-sig, including a mix of D2 Guardians (protocol partners) and D2 Rangers (Top Stakers).
The custom OMS (TraderApp) functions are limited within a risk framework built into the smart contracts, fully audited by Paladin Sec. This ensures that traders can only operate within defined risk tolerance parameters and cannot withdraw funds or wash-trade (they can trade only blue-chip tokens).
This means the architecture is fully non-custodial and is similar to other Liquid Staking Derivatives (LSDs) from an architectural perspective, albeit with much more sophistication underneath.
Please ensure you understand and acknowledge the risks of interacting, see disclaimer section below
ETH++ Token
ETH++ Token: ETH++ is an ERC-20 receipt token (sometimes called an interest-bearing token) based on the battle-tested model from protocols like Compound and AAVE.
This means that each ETH++ token is minted at a certain exchange rate (compared to USDC) representing the depositor’s share value of the vault. As the ETH++ Vault’s TVL accrues profits and losses (vault pnl), the exchange rate of the intrinsic value of ETH++ changes proportionally on top of the principal.
At expiration, all assets are returned to USDC, and a firm BID is made net of fees updating the exchange ratio
Contract Address: 0x27D22Eb71f00495Eccc89Bb02c2B68E6988C6A42
Example: Vault starts at 1 ETH++ = 1 USDC
Example 1: If the Vault’s PNL is +5%, the ETH++ bid value will be 1.05
Example 2: If the Vault’s PNL is -5%, the ETH++ bid value will be 0.95
Please ensure you understand and acknowledge the risks of interacting, see disclaimer section below
Secondary Market on Camelot
By seeding a secondary market for ETH++ on Camelot, we are able to comply with the whitelisting requirements at the primary level, while allowing a secondary market in the battle-tested Camelot interface, which has already processed 6 billion USD in trading volumes.
This implementation also enhances the user experience, making participation in this capped test phase of the vaults as straightforward as trading any other tokens.
Time: Launching Dec 22, 2023, a bit later than the start of a new Vault epoch (ETH++ Epoch 4).
Liquidity: Up to $80k USDC worth of ETH++ will be made available, effectively allowing users to swap tokens ( any token supported by Camelot aggregator) for their share of the vault.
Starting Value / End Value: Before and after the epoch expiration, the market is kept as close to intrinsic value on a best-effort basis.
Mark-to-Market (during the epoch): Contracts are made public and any user can perform an intrinsic value calculation independently. The market value may or may not be in line with the intrinsic value of the vaults.
Test Capacity: During this phase, 80k are available in the secondary market (vault cap). As the vaults are proven against real time market conditions, the vault caps will be raised.
Please ensure you understand and acknowledge the risks of interacting, see disclaimer section below
How to get ETH++
Getting exposure to ETH++ is as simple as a token swap. For those who want to interact directly with D2.Finance, the updated front end will launch at a later date.
Step 1: Visit https://app.camelot.exchange/
Step 2: Choose Swap on the UI
Step 3: Click and find ETH++ token in the swap menu (verify the correct contract address: 0x27D22Eb71f00495Eccc89Bb02c2B68E6988C6A42)
Step 4: Input desired amount you want to swap for and click swap. You will be prompted to sign the swap transaction.
Step 5: Continue to Hold ETH++ as the vault epochs roll over or Swap back after the epoch is finished.
We are thrilled to launch the first D2 Finance vault for live participation. D2 Finance aims to set the new standard for DeFi adoption by blending institutional grade expertise and risk management with technology and transparency only made possible on-chain
Join the D2 Finance community
D2.Finance brings the sophistication of a top-tier quant hedge fund on-chain. Single click deposit into Options Based Strategies focused on risk adjusted returns through decentralized, actively managed vault architecture, tailored to varying risk levels.
D2 Finance aims to harness its existing and burgeoning institutional fund contacts to facilitate on-chain asset exposure through institutional grade infrastructure and active quant trading.
Disclaimers
Performance Disclaimer:
The indicative ROI/APY showed in d2.finance front-end is not guaranteed and is subject to market risk. The strategies are not risk-free, and some epochs may result in a negative return. Further details and protocol incentives can be found in https://gitbook.d2.finance/. While the information contained within the website is periodically updated, no guarantee is given that the information provided in the website is correct, complete, and current.
Product Disclaimer: Test Phase and High Risk Investment
Please be aware that the ETH++ token and its associated products are currently in a testing phase. This phase is designed to evaluate and improve the system’s functionality, and as such, it carries inherent risks. Investments in this phase are highly speculative and should be considered high risk. Potential investors should be prepared for the possibility of losing their entire investment.
User Certification and Legal Compliance
By interacting with our smart contract, you, as the user, certify that you are legally permitted to invest in such instruments in your jurisdiction. It is your responsibility to ensure that your participation complies with local laws and regulations. We do not assume any responsibility for the unlawful use of our product in any jurisdiction.
Sophistication Requirement*
Participation in our strategies is intended for individuals who meet certain financial criteria that classify them as high net worth or sophisticated investors. The definition of a high net worth or sophisticated investor varies by jurisdiction, but generally includes individuals with significant experience in financial and business matters, making them capable of evaluating the merits and risks of prospective investments. Investing in advanced financial strategies carries inherent risks, including the potential loss of capital. Prospective investors should be fully aware of these risks and are advised to conduct thorough due diligence.
No Guarantee of Returns
Investing in start-ups and decentralized finance instruments involves significant risks. We do not guarantee any return on investment (ROI) or annual percentage yield (APY). The performance of these investments can be volatile, and past performance is not indicative of future results.
Independent Analysis and Due Diligence
We strongly advise that you conduct your own independent analysis and due diligence before interacting with the Vualt token. The information provided regarding ETH++ and related products is not intended to be, and should not be construed as, financial advice. On the same level to interact with other LSD derivatives.
Changes and Updates
Please note that the features, terms, and conditions of ETH++ and its secondary market on Camelot may change. Stay informed by reviewing our documentation regularly.
Acknowledgement of Risks
By proceeding with the investment, you acknowledge that you understand and accept the risks associated with high-risk investments, start-ups, and decentralized finance (DeFi) products.
General Disclaimer for D2.Finance services
Understanding the Agreement: By engaging with d2.finance, you acknowledge and accept the terms and conditions outlined in this agreement. Before proceeding, please read these terms carefully. By electronically interacting with Vaults token, you are acknowledging that it is as legally binding as if you had signed it manually. This means you fully accept the terms and conditions contained herein.
Updates to the Agreement: d2.finance may periodically update this agreement. We encourage you to regularly check for any changes or updates to these terms. Your interaction with Vault tokens implies your acceptance of the revised agreement. If you disagree with any of the terms, please refrain from interacting with vault tokens
Service Limitations: It is important to note that d2.finance does not directly provide services to the front-end interface. Instead, any actions related to our smart contracts should be considered under the terms and conditions of Camelot’s agreement. Please refer to Camelot’s terms for more specific details regarding these interactions.
Risk Acknowledgement: Swap Vault’s tokens involve significant risks. This includes the potential for complete loss of value of any property or cryptocurrency, as defined, that you deposit into the Vault. We urge you to consider these risks carefully before interacting with our Vaults token.
Your Responsibility: Your decision to use the Vault and engage with d2.finance’s services is your own. We advise you to exercise caution and consider your individual circumstances before proceeding.
Geographical restrictions: Residents or citizens of Antigua and Barbuda, Algeria, Australia, Bangladesh, Bolivia, Belarus, Burundi, Myanmar (Burma), Cote D’Ivoire (Ivory Coast), Crimea and Sevastopol, China, Cuba, Democratic Republic of Congo, Ecuador, Hong Kong, Iran, Iraq, Liberia, Libya, Mali, Morocco, Nepal, North Korea, Paraguay, Somalia, Sudan, Syria, Switzerland, United Kingdom, United States, Venezuela, Yemen, Zimbabwe or any other country to which the United States, the United Kingdom or the European Union embargoes goods or imposes similar sanctions (collectively, “Restricted Territories”) are not permitted in any capacity to interact with our vault token.
