Reward Vault Request: D2 Finance’s 2xBERA Strategy vault
1. Proposer Details
- Email: hwxfrank@d2.finance
- Proposer’s project name: D2 Finance
- Proposer’s X account: https://x.com/HWxFrank
- Best Telegram Handle for questions/fixes: @HWxFrank
- Affiliation: D2 team
2. Protocol Details
D2 Finance is a Multi-strategy Fund delivering Tokenized Derivatives Strategies and derivatives trading, in a 100% on-chain solution.
D2 Finance brings institutional expertise into DeFi, with a 10+ year history of managing capital for some of the largest allocators in the world (PAG, Northwest Investments HK, etc). This experience translates into robust, actively managed strategies capitalizing on market inefficiencies on-chain
- Protocol Name: D2 Finance
- Protocol Type: On-chain multi-strategy hedge fund, Tokenized Derivatives Strategies
- Protocol X profile link: https://x.com/D2_Finance
- Protocol docs link: https://gitbook.d2.finance/
- Protocol audits links: Paladin & Cyfrin audits have secured >$250m trading volume on D2 Finance Audits | D2.Finance
- Does the protocol have any relationship with current Berachain validators: In progress
3. Contract/Pool Details
- Contract Name: 2xBERA
- Contract Address: 0xCD18006cC69c6d5Fa4fd4EaF99910b58464fa3ae
- Contract Type / Configuration: ERC-4626 compatible vault with customized trading strategy smart contract
- Describe how the contract work:
The Vault is an ERC-4626 compatible single staking vault, which handles all deposits, withdrawals, and share accounting functions. When a user deposits funds in the vault, they receive an ERC-20 vault token representing their share in the vault
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Contract Fees: 2% management fee annualized, 20% performance fee on profits
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Existing Liquidity / TVL: Just opened for deposit of 1st Epoch, will updated upon close of deposit period
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Identify any address(es) controlling more than 10% of the contract shares: User deposits
See User holder distribution 2xBERA (2xBERA) Token Tracker | BeraScan -
Is the contract upgradable?: No
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Contract Control: Multisig
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Additional details on Contract Control:
- Is the contract verified: Yes
- Can the contract be paused: No
- Does the contract rely on oracles: No
4. Token Details
Provide the following details for each token in the contract (up to 5):
For Major Tokens (Vault deposit asset):
- Name: Infrared BGT
- Symbol: iBGT
5. Token / Project Background / Incentive Token Whitelist
Only two tokens can be whitelisted for use as incentives in a Reward Vault. Indicate which tokens will be used and provide all relevant information below.
- Incentive Token 1: USDC.e (from Hyperliquid Funding Arbitrage yield)
- Incentives will remain on-going in perpetuity so long as the strategy is active.
- Once D2 Finance’s EDA token is launched, bribes will switch from USDC.e to EDA (or a mix of USDC.e/EDA)
- Exact distribution is dependent on vault strategy yield, TVL, and market opportunities
- The D2 Finance team will manage the incentives distribution through a new team SAFE multi-sig 3/4 specific for incentive management. To be updated here.
6. Growth, Community & Ecosystem Impact
Why This Contract Matters:
Strategy Details: Infrared + Origami + D2 = 2xBERA. 2X Bera exposure and major yields… | by D2 Finance | Mar, 2025 | Medium
The 2xBERA strategy is a professionally managed yield optimization solution designed to strengthen the Berachain ecosystem’s Proof-of-Liquidity (PoL) flywheel while delivering value to all participants:
- Berachain: By utilizing iBGT as the deposit asset, 2xBERA enhances liquidity and utility for Berachain’s liquid governance token. It drives trading volume across partner protocols—Origami Finance, Euler, Beraborrow, and IVX—deepening ecosystem integration. Additionally, it leverages Hyperliquid for liquidity, execution, and funding arbitrage yield, reinvesting profits back into Berachain.
- Users: The strategy offers superior yield and exposure to BERA’s growth potential, balanced with downside protections, providing an attractive risk-reward profile for participants. An institutional grade set and forget option for building wealth
- Validators: Using earned USDC.e, 2xBERA will bribe validators to direct rewards to the 2xBERA reward vault, increasing Validator revenue while enhancing returns for users.
- Outcome: The strategy creates a self-sustaining cycle—BGT and yield accrual lead to more voting power, higher user yields, and increased total value locked (TVL) and trading volume for partner protocols, amplifying ecosystem growth.
This positions 2xBERA as a catalyst for Berachain’s expansion, delivering measurable benefits to the platform, its users, and its validators through a scalable, incentive-aligned approach.
TL DR;, 2xBERA matters because it’s a win-win-win design: Berachain gets deeper liquidity and activity, users get enhanced returns with some safety nets, and validators see increased revenue—all while creating a virtuous cycle that could accelerate the ecosystem’s growth.
2xBERA demonstrates a strategic reflexive design on how DeFi strategies can align incentives across a complex network.
Potential Volume / TVL:
This strategy has the capacity to scale upto $25-$50m
Synergies with Other Protocols:
This strategy will initially deploy capital to: Origami Finance, Euler, Beraborrow, IVX, Ooga Booga. The strategy can utilize internal flow within D2 portfolio to create synthetic option.
Marketing / Promotion:
We aim to elevate the 2xBERA strategy vault’s visibility and adoption by collaborating with key stakeholders in the Berachain ecosystem:
- Partner Protocols: BY working with Origami Finance, Euler, Beraborrow, IVX we’ll showcase how 2xBERA drives liquidity and trading volume, leveraging D2’s ERC-20 tokenization for seamless integration.
- Validators: Partnering with potential validators, we’ll highlight the revenue upside from USDC.e, positioning 2xBERA as a validator-aligned yield engine.
Long-Term Vision:
The D2 architecture tokenizes each derivatives strategy vault as a fully tradable, permissionless ERC-20 token. For 2xBERA, this creates significant opportunities within the Berachain ecosystem:
- Prime Collateral: The 2xBERA token can serve as a yield-bearing asset, positioning it as premium collateral for lending, borrowing, and trading across Berachain protocols.
- Liquid Secondary Market: Pairing the 2xBERA receipt token with WBERA or iBGT on Kodiak enables a fully liquid secondary market. This can be further incentivized as a reward vault or a speculative yield pool, driving adoption and liquidity and arbitrage opportunity.
By leveraging D2’s tokenization, 2xBERA enhances flexibility and value, amplifying its role as a cornerstone asset in Berachain’s financial infrastructure.
7. Verification
Please post the following text with the provided X account:
8. Risk Mitigation
Details: Addressing Risk | D2.Finance
D2 Finance prioritizes capital protection and leverages institutional standards and risk controls:
Highlights:
- Stress-Tested: Positive returns during August 2024 / February 2025 market crashes.
- Secure Execution: All trades settled on-chain; audited by [Paladin] + [Cyfrin].
- Risk is auditable on-chain. There is no centralized exchange exposure, with all trades/hedges done through defi platforms, and settled/executed on-chain.
Our architecture has been audited and rigorously battle-tested with >$250 million dollars in notional value traded across various DeFi protocols.
