Edson Ayllon on dHedge’s decentralized hedge fund platform

0:01i'm ashton addison from block west capital for investmentpitch media and the cryptocoin show and today on blockchain interviews we have edson ion the product manager at dhedge edson welcome to the show and thanks for taking the time to come on today yeah napoleon happy to hear likewise looking forward to diving into decentralized hedge funds uh your team

0:22at d hedge is working on something special let's just dive straight into the conversation with an overview uh from you on what are you guys working on at d hedge and and what makes it so special and then we'll dive into the details from there yeah for sure so um dehydrates the purpose of d is to uh create financial stability and financial freedom and make it accessible

0:44to everyone uh who wants it so any organization and any individual so we do this primarily through dhedge which is a protocol for managing assets these assets can be managed manually through individuals similar to what a hedge fund does or automated through the use of bots and automated strategies

1:11okay very interesting and now obviously the d and d hedges more decentralized getting more people involved um is there a difference between a traditional hedge fund that would be in cryptocurrency and and d hedge in terms of the operations and the assets and how you manage that yeah so uh d hubs is completely unchained this means that all the assets

1:38that is contained uh within the contracts that be uh operates with is uh they're all crypto assets um with uh for synthetics for example where an optimism that means that if you purchase commodities there they're uh crypto commodities so such as uh gold and silver their synthetic assets insured by chain also there's no minimum deposit and then there's no maintenance cost

2:06for running a pool there usually there's operational costs with traditional uh hedge funds which deal with kyc and all that for us if you would like to do kyc uh you can set a private pool and a white list investors individually interesting so it's from what i understand it's

2:33possible to start your own hedge fund inside of dhedge and bring in investors but is it also possible to just go to dhedge and just put your fun put your funds in with some already pre-allocated pool and they'll just manage it for you yeah yeah so um you can visit dhedge now and look at the leaderboard and filter to your preferences and find someone who fits your risk profile

3:01reputation and invest automatically so the moment you invest i know with traditional headphones there's a lot of trust so you have to trust that they won't run away with your money with dhedge everything is secured on chain which means the moment that you invest the manager can only uh trade it but you can't with they can't withdraw your funds well that's good to know and on chain

3:24are you guys working with a specific blockchain and that that limits the assets or um are are the assets spread across all chains and how does that work with the blockchain yeah so the assets are per blockchain so currently we're deployed on ethereum polygon and optimism so if you create a pool on polygon uh your uh have to trade assets within uh polygon that are available in polygon

3:51okay that makes sense and you know how long have you been working on this edson and when did you guys start and and how big has it grown so far yeah so we started with um i think light of 2020 and currently we're live so it's been almost two years it's about two years now um so if you go on probably um the

4:18oldest pool is probably just under two years now um we've grown i think we have uh 1200 different pools on wow uh d-hutch with over a billion in value i think we surpassed a billion i'm not sure it might have been last year at the start of this year mm-hmm awesome that's great to hear edson and you know with all those pools um are they beating the market or you know how

4:46successful have you know the top leaderboards been yeah so the market's been very bearish uh over the past uh i think almost six months probably slightly more now um so if you see like bitcoin topped in uh november of 2021 so if you you can search by performance for the past six months to see which are

5:13beating the market so um i know there's one that is uh our main products and the one that has the most capital is a stable coin farming product so it algorithmically changes between the specific quorum farm on polygon uh soon to be on optimism as well and i think it's only done about seven percent uh seven almost eight percent within less than a year it's a it's it's

5:41between six months to a year but that that product has actually been beating the market um i think it was like a year is pretty good compared to um traditional finance as well definitely that's great great to hear another thing is um if you if you go on each fund individually you can compare versus ethereum and bitcoin and have them side by side um

6:09any time frame that you are looking towards very cool and i was looking into some of the other creative protocols and what's coming next with d hedge and i saw about this tourist finance can you talk about that and how does that help expand dhedge yeah so taurus is a platform built on top of t hedge utilizing d hedge contracts it is uh structured products so they're

6:37unchained vaults uh dusd for example is one automated strategy that a taurus has the same with leverage tokens so these are liquidation resistance leverage positions that are perpetually in a leveraged position so we have 3x long on bitcoin and eth and then 2x short on bitcoin and eath as well and they're one-click you invest in them and then you're

7:04automatically put into a large position um also we have managed liquidity which is um unicef v3 automated strategy which is uh usd uh liquidity position that receives interest in trading volume fees so i think our last time i checked it was doing uh 17 apy uh on that pair so if you want exposure to eat while also being on the

7:35more risk-averse side while also gaining interest and that's a good product as well you also have a bitcoin yield which is on chain it um it it tracks the price of bitcoin but it with interest that makes sense currently it's doing i think four percent apy on your bitcoin very cool and maybe you can talk a little bit about some of the uh road map and expansion plans for d-hedge

8:02now you mentioned there uh the different pools on the different blockchains are you expanding out to more assets or more blockchains in the future or what else lies in store for dhedge yeah so currently for this quarter we're doing we're revamping the work on the dht tokens that currently want to add have it more tied to the protocol so the proposal is being currently

8:25written on so i don't want to disclose anything here as in uh what i what what is plan now might change based on community feedback but that's a big priority for our next release we recently had a release with regards to products called yet we had a release called moonlight which included integrating iv3 on both polygon and optimism as well as allowing

8:53managers who have a private pool to automatically whitelist members uh who have a certain nfc collection so if you if you're selling an nfc on polygon you can use that as an entry fee to enter into your private poll on if you have a pull-up um as well as uh we're currently looking to expand the financial instruments

9:20available to managers so we're currently on the roadmap is we're looking to integrate lyra on optimism so lara is options using synthetics protocol which is uh options is something very familiar with people who are involved in traditional finance but it's new in d5 so we're very excited to integrate it that is exciting and speaking of managers of the pools i'm curious do you

9:48have an idea of of the demographics of who's actually managing or what kind of customer base are in d hedge you know is it a lot of retail investors or are there also you know traditional hedge fund managers coming in and managing their hedge funds through dhedge for people to bring you know more democratized access to to the same kind of funds yeah so it's a mix so we have um

10:16in terms of managers there's two types of managers that i've seen do the best well actually a few uh first there are daos so people that um uh have a community and they built a dial around that and then our men are uh outsourced are providing their skill set uh for the for their followers within that dial um such as i think defy slave is one of them

10:42as well as um uh people from traditional finance that uh are involved in hedge funds who want to run their own on the side um they're what they do is they do individual attributes outreach to their investors so they talk one-on-one and have investors invest in their goals as well as influencers so people who have a large following on social media um they

11:09reach out and post their pool on their twitter and then they get investors through that as far as people who deposits are pools a lot of them are retail investors as well as traditional traditional finance types mostly through discovered through the manager very cool it's great to see that mix and uh

11:34you know we're looking further down the road you know where do you hope uh dhedge to be you know hopefully the cryptocurrency markets move into another bull market and that brings more traction to all of the platforms and ecosystems in in blockchain but you know in a year from now or two years from now even which is a long time in in cryptocurrency and where do you

11:57hope the dhedge is positioned in the blockchain ecosystem uh so currently um d edge is the most feature complete product on optimism and polygon with regards to asset management we hope that um more people are utilizing this platform as we go forward especially say we have another year bear market we hope to

12:23have more bring more people into crypto regardless of what uh ethereum and bitcoin are doing um say we go into bull run we hope to ride that as well um but yeah nothing but growth that's great and for people that are looking to look through the pools potentially invest or even manage their own hedge fund what's the best way for them to get involved and to learn more

12:50they can go to dhedge.org also the twitter look updhedgeorg on twitter and source.finance and yeah on twitter okay i will leave the the platform link and the twitter as you mentioned in the description box below as well all the best with everything dhedge moving forward and let's follow up in the near future great thanks for having me

13:25you