Welcoming D2 Finance to The Archipelago
And how Kodiak will double Dip EDAmame!
Greetings Beras!
We are thrilled to welcome D2 Finance to The Archipelago. The general premise of this collaboration is to bring innovative liquidity solutions and advanced asset management strategies to Berachain, enhancing the ecosystem’s overall robustness and utility.
So, let’s dive in.
About D2 Finance
D2 Finance can essentially be thought of as your on-chain hedge fund. Their sophisticated options-based vault architecture offers users a plethora of different managed strategies that are accessible in a single click, ensuring consistent, risk-adjusted returns across market cycles. D2’s ability to take advantage of sophisticated financial mechanisms guarantees that they remain at the vanguard of the industry.
We’re simply blessed to have yet another chad team building on Berachain.
D2 Finance’s integration with Kodiak will provide the ecosystem with substantial benefits. Their native Berachain token, EDA, and the implementation of new token liquidity pools on Kodiak will significantly enhance the network’s overall liquidity and stability, in addition to the underlying use of Kodiak islands for managed trading strategies. Furthermore, D2’s secondary market for vaults will enable the seamless shifting of liquidity during mid-epoch trading periods, thereby guaranteeing that fund positions remain adaptable and fluid.
Kodiak X D2 Finance
D2 Finance will utilize Kodiak as a foundation for its protocol-owned liquidity and managed trading strategies on Berachain. This encompasses establishing new token liquidity pools and the deployment of a new Berachain native token, EDA, thereby establishing a robust framework for liquidity management.
In order to facilitate liquidity shifting in and out during mid-epoch trading periods, the partnership will incorporate a secondary market for vaults. This novel method guarantees deposited funds, which typically require users to wait to exit at NAV (guaranteed) at the end of the trading epoch (monthly), can utilize Kodiak to allow extra withdraw/deposit flexibility mid epoch, and facilitate pricing further Derivatives on top of the Vaults ( Alpha.. IVX… Moby….etc).
This collaboration improves the liquidity and flexibility of fund positions by leveraging the eBERA strategies to capture dynamic market opportunities and generate additional user benefits. D2 Finance will earn BGT to supply liquidity, thereby capturing current market opportunities and yields by providing liquidity on concentrated liquidity pairs. These endeavours contribute substantially to the stability and expansion of the Berachain ecosystem.
Basically, more sticky liquidity and more of that sweet, sweet yield!
Kodiak: The belly of eBERA
In more detail, up to 50% of the total value locked (TVL) in eBERA will be actively invested within Kodiak pools. This integration allows D2 Finance to leverage its expertise in hedge fund management and derivatives to maximise returns and distribute rewards efficiently. Specifically, D2 Finance models Kodiak pools as lopsided short straddles, which are traded against other momentum and volatility strategies within eBERA.
This dynamic approach enables eBERA to not only provide significant downside protection during periods of market volatility but also act as a critical liquidity provider within Kodiak when most needed. This is further enhanced by the added incentives from BGT, ensuring that eBERA remains a resilient and integral component of the ecosystem.
Kodiak Double Dipping EDA airdrop
Kodiak, as a crucial partner of D2 Finance, will receive 4 Partner Squad NFTs, providing significant access to the EDA airdrop. This will allow Kodiak to benefit directly from TVL while sharing the upside on EDA, hence double dipping.
E.g. By ranking first on the Edamame.fun leaderboard, Kodiak’s treasury would be set to receive a remarkable 4.95% of the total EDA airdrop. For more insights on the mechanics and strategic benefits of the EDA airdrop, refer to the detailed medium post:
https://medium.com/@D2.Finance/eda-airdrop-partner-squads-131b5e91bcc8
More TVL in eBERA -> more TVL in kodiak, -> more BGT for eBERA -> Better APR -> More TVL in eBERA -> more TVL in Kodiak
The Archipelago Supports the Growth of The Berachain Ecosystem
Kodiak is the native liquidity hub of Berachain. Our vertically integrated four-product suite is designed to be the foundation of all liquidity on Berachain.
The Archipelago is comprised of top protocols in the Berachain ecosystem that are all aligned with the vision of the chain. Everyone will play their part in helping grow and strengthen the ecosystem to help it reach the heights that we believe it can reach.
We are honored to be able to build long-term relationships with some of the brightest minds in this space who want to play a role in the bera future. We will continue to bring value, utility, and sticky liquidity to all you fellow beras.
The Archipelago continues to expand.
Welcome to The Archipelago, D2 Finance! Together, we are building a stronger, more resilient Berachain ecosystem. For the latest updates about D2 Finance, follow their Twitter page.
