dHEDGE — Frequently Asked Questions

dHEDGE is a decentralized asset management protocol that lets skilled traders create tokenized vaults and charge management fees, while investors deposit into those vaults to earn returns without giving up custody of their funds. The protocol runs on-chain across multiple EVM-compatible networks, ensuring full transparency and security. Vault managers can trade over 100 assets, use DeFi tools like lending markets and derivatives, and even automate strategies with the dHEDGE SDK. Depositors receive vault tokens representing their share, redeemable at any time.

To create a vault on dHEDGE, navigate to the Manage section of the app and connect your wallet. You can then configure your vault's name, performance fee, management fee, and entry fee. Once deployed, your vault is live on-chain and investors can deposit into it immediately. dHEDGE provides a full suite of trading tools accessible directly through the vault management interface, including spot trading, lending, perpetuals, and yield farming integrations. You can also use the dHEDGE SDK to automate your trading logic programmatically.

dHEDGE allows vault managers to configure three types of fees: a performance fee charged as a percentage of profits generated, an annual management fee based on assets under management, and an entry fee charged when investors deposit. These fees are collected automatically by the smart contract and sent directly to the manager's wallet. This model lets talented traders monetize their edge without needing to run a traditional fund or deal with legal overhead. Fee parameters are set at vault creation but may be updated within protocol limits.

dHEDGE has been live since 2020 with a perfect security record — zero incidents to date. The protocol has undergone multiple independent security audits by leading firms in the blockchain space, and a full audit timeline is available in the documentation. In addition, dHEDGE runs an active bug bounty program on Immunefi, rewarding security researchers who responsibly disclose vulnerabilities. The smart contracts are open source and verifiable on-chain. That said, as with all DeFi protocols, users should conduct their own research before depositing funds.

dHEDGE is deployed on multiple EVM-compatible networks, including Optimism, Polygon, and Arbitrum. This multi-chain support allows vault managers to access a broad range of DeFi protocols and liquidity sources across different ecosystems. New network integrations are added regularly as the protocol expands. Investors can choose vaults deployed on the chain that suits their needs in terms of gas costs, available assets, and supported integrations. Always verify which network a vault is on before depositing to ensure compatibility with your wallet and assets.

DHT is the native governance token of dHEDGE. DHT holders can participate in on-chain governance by voting on protocol proposals, including changes to fee structures, supported assets, integrations, and treasury management. Token holders can also stake DHT to gain voting power and earn staking rewards. Governance happens through the dHEDGE forum and Snapshot voting platform. The DHT token aligns the incentives of the community, vault managers, and protocol developers, giving stakeholders a direct say in the protocol's future direction.

Investors can browse available vaults on the dHEDGE Explore page, review performance history, fees, and strategy descriptions, and deposit supported assets directly from their Web3 wallet. Once a deposit is made, investors receive vault tokens (ERC-20) proportional to their share of the vault's total value. These tokens can be redeemed at any time for the underlying assets. There is no lock-up period by default, giving investors full control over their funds. Performance data and portfolio tracking are available in the My Deposits dashboard.

dHEDGE vaults support over 100 assets spanning multiple categories including major cryptocurrencies, stablecoins, DeFi tokens, and synthetic assets. Vault managers can interact with integrated DeFi protocols to access lending markets (like Aave), decentralized exchanges (like Uniswap and Velodrome), perpetual trading platforms, and yield farming opportunities. The asset whitelist for each vault is determined by the protocol governance and the specific integrations active on that network. Managers cannot withdraw funds to arbitrary addresses — all capital stays within the approved asset universe.

Yes. dHEDGE provides the @dhedge/v2-sdk, an open-source TypeScript SDK that allows vault managers to programmatically interact with their vaults. This enables fully automated trading strategies, bots, and algorithmic systems that can execute trades, rebalance portfolios, and manage DeFi positions without manual intervention. The SDK is available on npm and documented fully for developers. Automation unlocks strategies that transcend human limits — including high-frequency rebalancing, delta-neutral hedging, and complex multi-step DeFi interactions.

Toros Finance is a project built by the dHEDGE team on top of the dHEDGE protocol infrastructure. It specializes in structured DeFi products such as leveraged tokens, yield-bearing stablecoins, and other automated strategies. Toros uses dHEDGE vaults under the hood to deliver these products in a user-friendly interface. Similarly, mStable is another ecosystem project that leverages dHEDGE infrastructure for efficient yield stacking. These projects demonstrate the composability of dHEDGE as a foundation layer for building sophisticated on-chain financial products.

dHEDGE uses a decentralized governance model powered by the DHT token. Community members can submit proposals on the dHEDGE governance forum, discuss changes, and vote using Snapshot — a gas-free off-chain voting system. Voting power is proportional to staked DHT holdings. Approved proposals are then implemented by the development team. Governance covers protocol upgrades, supported integrations, fee parameter bounds, treasury allocation, and new network deployments. The goal is to progressively decentralize decision-making to the broader dHEDGE community over time.

The best place to get support for dHEDGE is the official Discord server, where the core team and community members are active and responsive. You can also find comprehensive documentation at docs.dhedge.org, covering everything from getting started as an investor or vault manager to SDK integration guides. For bug reports or security issues, please use the Immunefi bug bounty platform. Community discussions also take place on Twitter and Telegram. The dHEDGE team is committed to helping users at every level of experience.