[D2 Finance] LTIPP Application Draft - FINAL

D2 Finance is deeply integrated with over 18 protocols in the Arbitrum ecosystem, leveraging the power of composability that lies at the heart of DeFi.
By building upon and interconnecting with these existing protocols, D2 amplifies network effects.

While D2’s TVL may currently appear low, it is essential to recognize that the protocol is still in its proof-of-concept phase. As D2 transitions into DAO structure, TVL growth will accelerate rapidly, propelled by increased user adoption, expanded features, and the network effects of composability

Clear milestones have been set so the foundation and DAO can hold the protocol accountable.

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Our delegation has decided to vote in favor of this proposal.

D2 Finance explains the operations of its ETH++, RODEO++, and ARB++ vaults. It states that the decision to maintain a capped TVL is for security reasons and proposes a nearly 50% reduction in size.

Considering that D2 Finance is a native protocol on Arbitrum, notable for its degree of composability with innovative trading and yield strategies that add value to Arbitrum, the explanations provided and the new grant amount requested address the Council’s concerns and make it worth the investment from the DAO.


As ITU Blockchain, we would like to inform you that we will vote to abstain from D2 Finance’s proposal. The proposed ARB token amount (100,000 ARB) is not in line with the current market traction and utilization. The reported trading volume of $11 million is quite low compared to the size of the proposed grant. Therefore, we believe a more reasonable and proportionate approach should be adopted. This would align with the project’s current status and give it a more solid start. We are ready to support the proposal if the team revises the request. In summary, we will not be able to support this proposal in its current form as there is a mismatch between the proposed grant amount and the current traction of the project. However, we would happily offer support if it is resubmitted with a more reasonable funding request.

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Thank you for reviewing our proposal.

We appreciate your consideration and feedback. I would like to highlight that our reported trading volume of $11 million is significantly higher compared to other yield products that have received support on similar scales. For instance, protocols such as Yearn or Factor have requested over 300,000 ARB despite having much more limited traction on Arbitrum. It’s important to note that our TVL is intentionally capped for security reasons as our vaults integrate more deeply with DeFi ecosystems, and we have preferred to allow a few epochs to pass before opening further deposits.

I noticed that your support for Yearn, which requested 300,000 ARB, seems to contrast with the decision on our proposal. Could you please elaborate on the specific metrics or criteria that influenced your decision as D2 is better by any resoanble data:

They have near zero TvL on arbitrum / not native / Not even one of their Vault can compare tto the performance of our Vaults / and they ask 3x the size.


In addition to above for more detailed insights, you can view our activities across protocols such as Camelot and Aave on Flipside Crypto:

While it is true that our strategies carry some complexity and may require more than a cursory review to fully understand, especially for those not familiar with hedge fund strategies, the results speak for themselves.

Our protocols differ from the static strategies commonly encountered in the market, which often see diminishing returns.

Our approach has consistently delivered value to our users, as evidenced by a 100% retention rate among those who have invested the time to understand and participate in our offerings.

Hi everyone,

It appears that Yearn has significantly more firepower to increase their total value locked (TVL) due to their history. This is not meant as a criticism of D2 Finance, but requesting Arbitrum (ARB) incentives representing 1/3 of your current TVL is a large stretch for us.

As mentioned in our rationale, we will support a smaller initial grant and scale it accordingly later.

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“more firepower” let’s see in few months ser :saluting_face:

interesting idea actually for a new primitive to “tokenize” the spread of performance with competing products.

Per Arbitrum Foundation Compliance requirements, D2 Finance is updating the MultiSig used to receive the ARB grant rewards to 0x6f1e46C80b8e1C528B05801a5668C01D9f99d258

This is a 2/3 multisig including team and D2 Ranger

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Per Arbitrum Foundation Compliance requirements, D2 Finance is updating the MultiSig used to receive the ARB grant rewards to 0x6f1e46C80b8e1C528B05801a5668C01D9f99d258

This is a 2/3 multisig including BWS Labs, Team and D2 Ranger