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

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

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To me this proposal should be approved. I have joined and engaged in the D2 community for about 7 months. I changed my mind from being suspicious to completely supporting the project. Discovered many stories about how the team started, and their experience in tradiFi, especially how they were trusted and supported by many OGs in DeFi. As a long-term investor, I did a lot of due diligence and was convinced by the vault’s performance (utilizing the internal fund should be appreciated). Finally, the dispute in 2 months was unexpected but it turned out that transparency and community-oriented is what the team always keeps in mind. After all, the community has shown unwavering support more confidently. Also, worth mentioning that bringing more exposure from traditional institutions to thrive the whole ecosystem is what the team attempting to do.


appreciate it ser, a couple of good points to highlight missing in the proposal! will be ready for the snapshot :saluting_face:

Hello @HWxFrank,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

Please complete the following steps required for your application to proceed to Snapshot:

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@HWxFrank To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

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Firstly, thank you for your proposal and keen interest in the Arbitrum ecosystem.

Introduction and Rationale

D2.finance is seeking a grant to incentivize the initiation of their vaults and boost liquidity to their GMX/DSQ pair on Camelot with a request of 500k ARB. This project, a native Arbitrum application, holds the potential to tailor yields on underlying assets, accommodating investors with varying risk tolerances. Despite the promise, D2.finance has yet to establish a substantial presence within the Arbitrum ecosystem, reflected by the low DSQ TVL on Camelot. While the endeavor to enhance the composability of underlying assets and diversify risk for a broad investor base is commendable, the current stage and effectiveness of D2.finance in Arbitrum remain uncertain.

Major Concerns

Concern on Track Record and Benefit to Arbitrum

  • D2.finance has yet to prove its effectiveness on the Arbitrum ecosystem
  • Paused development and minimal liquidity and volume for GMX/DSQ pair on Camelot
  • Our recommendation for change: Focus on product development and establish a solid footing within Arbitrum before seeking grant incentives.

Minor Concerns

  • The project is not yet live with vaults, raising questions about its readiness for the requested grant
  • Unresolved internal governance issues have previously halted development


Castle Capital appreciates the efforts put forth by D2.finance and the potential enhancements they could bring to the diverse investor community. However, in its current form, we do not support the proposal moving forward. Namely, we believe issues regarding D2.finance’s track record and its unproven benefit to the Arbitrum ecosystem need to be addressed.

Our recommendations can be summarised as follows:

  • Concentrate on consistent product development
  • Establish a solid presence and proven functionality within Arbitrum

We hope that our comments serve as constructive feedback for the continuous improvement and eventual success of D2.finance in contributing positively to the Arbitrum ecosystem.

Dear Castle Capital,

We genuinely appreciate the time you’ve taken to review our proposal and provide insightful feedback.

  1. Regarding the “low DSQ TVL on Camelot”: We believe there might be a discrepancy in the TVL figures observed. As of my writing, the TVL stands at approximately 400k. It’s crucial to ensure that all pools have been accounted for when determining the TVL. [Reference Image 1]
  2. Focus on Product Development: We understand the importance of consistent product development. I’m pleased to inform you that we will be deploying our newly audited vaults this week. This move has been pending the final approval from Paladin for our V2 vaults that we received on 27 September. Perfect timing to start generating real yield and fees on Arbitrum. [Reference Image 2]
  3. On the topic of the project’s live status with vaults: D2.finance has been operational since November 2022. We’ve utilized internal capital, which has generated significant fees within the Arbitrum ecosystem. This is proportional to just the internal TVL, details of which can be found in our application. It is our belief that our commitment to security and compliance should be seen as an asset, especially in light of recent events like the FTX mishap, which shifted the risk-reward dynamics of deploying V1.
  4. Internal Governance Issues: We acknowledge the past governance challenges but wish to emphasize that these have been fully resolved through a legal settlement under Swiss law.
  5. Track Record: We take pride in our vaults’ performance. Historically, they have delivered between 30% and 80% APR. This is verifiable on-chain, as evidenced by the over 1000 trades across multiple vaults such as ARB++, GM++, GLP++, and ETH++.

We strongly believe in maintaining an open dialogue and invite you to join our Discord community. This will provide you with an opportunity to closely follow our development and have a more comprehensive understanding of our operations.

Your feedback is invaluable, and we are committed to addressing any concerns to ensure that our proposal aligns with the broader goals of the Arbitrum ecosystem.

Warm regards,


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@HWxFrank Friendly reminder to complete the following:


@cliffton.eth @stonecoldpat @eli_defi

We would like to formally request to mark the D2.Finance proposal as FINAL

We have incorporated the feedback from comments, partners, and delegates into our proposal for snapshot voting.

Thank you from the D2.Finance team

Lets go Arbitrum


Post has been marked FINAL and locked.


thanks, sir! appreciate the effort of the team through the process!

We appreciate the detailed proposal and the contributions from D2.finance. The proposal mainly focuses on creating a flywheel for the start of the vaults and increase liquidity to the GMX/DTQ trading pair on Camelot. Even though we find the objectives and aims to be consistent and reasonable, considering that D2.finance is comparably a new project and is not yet live with vaults, the amount of grant requested is considered to be excessive on our behalf. Based on these reasons, we as ITU Blockchain vote against this proposal.