[D2.finance] [FINAL] [STIP - Round 1]


More details on d2.Finance on weekly alpha Friday on D2.Finance discord.

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Grant landing on DSQ its a win-win since GMX and Camelot also benefit from this
Perfect symbiosis :brain:


It’s great to see this proposal going live. We need NEW players to enter the arena and bring innovation.

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Really hope we can get this going.

Would be really amazing if arbitrum.foundation supports this great project and the arbitrum ecosystem.
Because this proposal benefits more then one project - DSQ, GMX, Camelot.

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D2 Finance is a project that doesn’t have too many special features and I also don’t see the project making clear contributions to the Arbitrum ecosystem in the future.

I do not agree with this proposal.

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I have conducted some background research on some of those grants. Dsquared Finance is a new project with no proven track record and a questionable history, highlighted by a pause in the project between June and August due to a dispute among the founders and treasury outflows exceeding 380k (GnosisSafeProxy | Address 0xe7eb925300075E49fc5CAaD5d408A50Dd22f92D6 | Arbiscan), which occurred 52 days ago. I disagree with this proposal and do not believe they should receive 500k ARB.

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I support this proposal. A few things worth noting is the commitment shown by the team to the Arbitrum ecosystem, while also having experience and exposure to the expectations and feedback from Tradfi. The project appears to keep much of the activity and strategies within the Arbitrum ecosystem and not only seeks to increases TVL and liquidity for Dsquared, but also for GMX and Camelot. As vaults and strategies are implemented, it seems it would apply to more projects.The project also appears to focus on Arbitrum native platforms for its options trading strategy with the intent of meeting return expectations of Crypto native and Tradfi. In this current environment, I think its important to take a harder look at institutional adoption. This is not only for increased capital into the Arbitrum ecosystem, but provides education and use cases for institutional money and potentially regulators to consider. I think the space is maturing overall and appealing to different subgroups are important for the space to continue growing.I did notice a comment about an internal dispute amongst the team that resulted in a pause. I understand that as a consideration. However, the ability to resolve a dispute and continue forward with a resolution instead of closing shop is an accomplishment in itself during the depths of a bear market. I think this dedication redirected to advancing the project within the Arbitrum ecosystem is further evidence of the need to support the project.


Hello @HWxFrank thank you for your application! Your submission meets all requirements to be considered for a snapshot vote.


Gm ser,

Thank you for reviewing the d2.finance proposal.

Which quantitative metrics do you deem essential when evaluating contributions to the Arbitrum ecosystem? I posit that the fees generated within the ecosystem and their projected values are crucial.

Despite having a minimal Total Value Locked (TVL), our LIVE trading has demonstrated the capability to produce substantial fees not only to the official partners as GMX, Camelot but also on higher margins Options protocols Lyra (top 50 trader), Dopex (high % of open interest in multiple epochs), Rysk ( 1# trader by # of trades in their alpha)…

You might have overlooked the links to all our active vaults and the trades executed within the ecosystem, amounting to over 1 million USDC in notional traded. If you do not concur with the projections (i.e., extrapolating the data with a 10M TVL, which would set us on track to generate over 1 million in the ecosystem), could you please share your hypothesis or the data you’re relying on?

Even you have pessimistic projections does seems d2.finance should rank well in #realYield.


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Thank you for taking the time to investigate d2.finance. We indeed had an eventful summer. However, every challenge was amicably resolved through legal settlements governed by Swiss law, with leading Swiss law firms steering these settlements. These resolutions have firmly and legally positioned us to establish a protocol that, in the foreseeable future, can cater to the institutional readiness sought by our traditional finance contacts. This has been our vision ever since we ventured into this domain.

Although the precise terms of the settlements remain confidential, we have divulged all information that we’re allowed to share during our Alpha Friday sessions on our Discord server, which encompassed eight distinct issues, and during one AMA session. For further clarity, a substantial part of the payment you alluded to was channeled through vesting contracts, both as completion payments and as part of a voluntary buyback scheme for our investors. It’s crucial to emphasize that the buyback offer at 15 DSQ/USDC was made available to ALL our investors, whether primary or secondary. However, only a select few opted for this offer, with the majority (~70% of net liquidity) choosing to stake.

We also extend our heartfelt gratitude to the GMX and Camelot teams. Their guidance and unwavering moral support were pivotal in helping us reach this stage, enabling us to introduce what we believe will be the most innovative vaults in the entirety of DeFi on Arbitrum.

You can review the bid liquidity on Camelot Camelot DEX | Arbitrum native Decentralized Exchange


Thank you for responding. However, my stance remains unchanged regarding the proposal and the arbitrum community should as well. You have six active users in the discord. Zero traffic on your X account (nine likes, half is your staff). Last post was from 2nd of September. Seeking to gather 500k for an incentive under these circumstances seems questionable to me.

Additionally, you mention trading vaults with 10 million in a market that currently has no on-chain volume and volatility. Could you explain on how you plan to achieve a net positive under these conditions not speaking of how you’ll be able to get such amount from users?


Hope this grant gets approved as:

  • This grant will benefit a lot of players in the Abitrum ecosystem
  • D2 aims to bring tradFi quality hedge fund to arbitrum
  • Is one of very few projects aiming to bring compliant instutional players into arbitrum
  • Are innovating next to CCIP to bring assets from any other public/private blockchain into arbitrum

So this will greatly benefit the ecosystem by helping mature the hedge fund DeFi ecosystem while reinforcing Arbitrum as the leading blockchain for DeFi.

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Thank you for your detailed feedback and for taking the time to delve deeper into our proposal. We genuinely value constructive discussions like these as they help us refine our approach and understand community perspectives.

Allow me to address your concerns:

  1. Activity Metrics : We concur that the number of likes or superficial metrics don’t holistically reflect the essence of our operations. We are in the business of creating tangible value, not mere online influence. Our focus is predominantly on substantial institutional players, with an emphasis on family offices in this current environment. Your understanding of our community’s strength would benefit from a review of our Alpha Fridays updates. These updates illuminate the unwavering support we’ve received from core community members like the D2 Rangers and D2 Hunters, especially during trying times. A testament to this commitment is our impressive staking ratio of around 70% of the net supply. For a deeper understanding, you can refer to DeBank | The Web3 Messenger & Best Web3 Portfolio Tracker
  2. Engagement Outside of Discord: We recognize that not everyone has the luxury of time to stay active on platforms like Discord throughout the day. Our approach has always been about quality over quantity. We have been making significant efforts to engage with potential allocators through our existing network in TradFi. This community, which highly respects and trusts Luca’s reputation as a leading derivatives trader in Asia, has traditionally been hesitant towards Crypto and DeFi. However, the proposed incentives aim to bridge this gap and encourage people take the opportunity in more serios considerations.
  3. Objective of the $10M Vault: The figure might seem substantial in the context of DeFi, but in comparison to the potential of our existing contacts in TradFi, it is a relatively modest amount. We believe it provides a feasible starting point to integrate these entities into the world of DeFi.
  4. Options Liquidity: We are fully aware of the importance of robust options liquidity for the success of our proposal. To that end, we rely on established protocols such as Lyra, Rysk, and Dopex to ensure the necessary liquidity is available. Supporting proposals that aim to incentivize Options Liquidity is in line with our vision and strategy.

In conclusion, we understand your concerns and appreciate the opportunity to provide clarity. As always, we remain open to further discussions and welcome more insights from members like you.


ChatGPT, thanks for your reply.

We appreciate your great feedback ser!

We will definitely highlight the third and fourth points in the final proposal!

Most credit to HWxFrank who has invested significant effort into crafting this proposal and devising ways to contribute to the growth of Arbitrum.

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Thank you, sir, for your support since the beginning! We take pride in our D2 Rangers! :saluting_face:

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Please do not vote yes. There is no vault live and d2 is asking for 500k arb to be distributed. The protocol has 0 users and 0 tvl and most importantly 0 demand:

The dsq / gmx pool (which would get 20% of the incentive) on camelot does $100 of volume in 24h over the last couple of weeks.

It’s interesting that this is the only protocol you have an opinion on. It almost seems as if you have a targeted agenda, perhaps even in violation of a settlement agreement.

D2.finance provides Options-based DeFi Vaults on Arbitrum, leveraging key Arbitrum protocols. Their V2 vaults, audited by Paladin, integrate with GMX, Camelot, AAVE, 1inch, Lyra, and TraderJoe. They offer diverse strategies for varying risk levels across platforms, including a special vault for the Arbitrum system (ARB++) which will be live as soon we receive the Paladin thumb-up.

Thanks for the great and in-depth feedback, sir. We are proud to have you in our community!

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