Introducing d2ETH: farm ETH with Zero fees* | Built on top ETH++

D2 Finance
5 min readSep 24, 2024

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At D2 Finance, we’re excited to announce the launch of d2ETH, a product that represents the middle ground between the conservative ETH++ strategy and the risk-on dgnETH strategy, rounding out our comprehensive portfolio of ETH product offerings.

*only for D2 Rangers*

This product is a straight-up competitor to other methods of farming ETH exposure, while receiving real sustainable yield (see DeFi llama WETH yields).

And yes you also get EDA points for depositing, but what’s most important is the REAL YIELD part.

d2ETH: the best of both worlds

d2ETH combines the best of both worlds: leveraging the full beta of ETH while reinvesting the borrowed capital into the low-risk ETH++ vault as portable alpha*. This provides exposure to the upside to our flagship vaults with enhanced capital efficiency by depositing WETH (ETH++ underlying asset is USDC for deposits).

https://www.returnstacked.com/portable-alpha/

ETH++ performance returns, net of fees

d2ETH: A Medium-Risk Strategy with Competitive Upside

While ETH++ was designed for family offices seeking long-term exposure to ETH’s multi-year growth, with strong downside protection and delta ranging from [-20%, 200%], d2ETH takes a more aggressive approach.

Before we dive in, its important to note, portable alpha is an investment strategy that aims to separate the alpha (outperformance) of an investment portfolio/strategy from the beta (market) exposure.

The advantage of portable alpha is that it allows the desired market exposure (beta) at a low cost, while trying to generate additional returns (alpha) through more specialized, active management. This improves the overall risk-adjusted returns of the strategy

Here, the d2ETH managed strategy borrows USDC against the ETH collateral and redeploys that capital into ETH++, effectively boosting investor yield while maintaining beta to ETH.

This structure positions d2ETH as a formidable alternative to existing farming strategies, offering a delta of [80%, 140%], with ZERO fees*, ensuring users retain maximum upside.

A Product Tailored for Rangers first and xD2 wars later

One of the most unique features of d2ETH is it will be long term exclusive to D2 Rangers and xD2 wars participants.

In its first epoch, only 1 xD2 token will be required to access d2ETH as a test epoch with 100 ETH cap. Moving forward, you will be required to be a D2 Ranger.

This exclusivity is not just a perk — it’s a testament to D2 Finance’s commitment to its core community and directing value (compliantly) to xD2 and D2 Rangers. d2ETH will remain fee-free throughout its lifecycle for Rangers, making it the ultimate yield product for our most loyal users.

As a reminder if you join a Ranger Squad the requirement of 50,400 xD2 to become a ranger is halved to 25,200, plus your squad are able to farm the upcoming D2 EDA token airdrop.

d2ETH would be also the default protocol for xD2 participants who want to build on top of d2ETH and allow their community to access the product at zero fees, akin to Lido on top of staked ETH.

d2ETH vs. Competitors: A New Standard in Farming

Unlike traditional ETH farming strategies that often are just points vaporware, d2ETH simply targets to beat Lido andother ETH staking solutions in the long run . It’s the ideal strategy for those looking to stay fully exposed to ETH’s price action while enhancing their yield.

Within the d2.finance platform, d2ETH offers a middle-ground between ETH++’s stability and dgnETH’s degen-level returns. The delta [80%, 140%] provides a sweet spot, with upside potential outpacing conservative options but without the extreme Theta decay which is characterized in dgnETH (in a flat / dull market dgnETH will underperform).

D2 Finance Complete its ETH offering

  • ETH++: The low-risk vault for conservative investors, providing ETH exposure with downside protection and a delta of [-20%, 200%], but historical average have been more around 10%/15% delta.
  • d2ETH: Our new, medium-risk product that uses ETH collateral to borrow and invest, ensuring 100% beta to ETH and a delta of [80%, 140%] according ETH++ embedded positioning.
  • dgnETH: The degen version with the highest risk/reward profile, offering a delta of [100%, 400%].

Secure Your Spot in d2ETH

With 1 xD2 required for entry and no fees, d2ETH should be one of the most competitive ETH farming strategies available in the market. Over the long term, the only way to access d2ETH will be to become a Ranger or a xD2 wars builder/participant. Learn more in our discord if you have any questions.

D2 Finance is a Multi-strategy Fund delivering Tokenized DeFi Derivatives Strategies and bespoke derivatives trading, in a 100% on-chain and non-custodial solution.

D2 Finance’s portfolio of sophisticated and diversified DeFi strategies are designed to maximize returns by balancing risk and reward efficiently, drawing on our team’s deep expertise in hedge fund management and derivatives, while leveraging unique opportunities in the digital asset space.

For more details and to join this groundbreaking venture, visit our website and join our community on Discord and Twitter.

Website | Twitter | Discord | Medium | Docs

Disclaimers and restrictions

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D2 Finance

D2 Finance is a Multi-strategy Fund focusing on Tokenized DeFi Derivatives Strategies, in a 100% on-chain and non-custodial solution.