So, I bought a Chord Hugo TT2...now what?

TT2 when used in DAC mode puts out 2.5v via RCA and 5v via XLR.
I’m using balanced cables. And herein lies the problem - the hot 5v output results in heavy emphasis on bass and drive, muddying up the mids and highs and flattening the soundstage.
To overcome this issue and bring the TT2 sonics to the level that’s acceptable for a DAC in this price range, I changed the configuration and am now using it in AMP mode.

I will share settings that worked for me in my system and I’ll preface this by saying if you’re making changes, it is critical to turn off your source feeding the TT2 and turn off your amplifier. If you switch your TT2 to amp mode while you have your system playing, it is capable of sending a signal to your amp that may damage the amp and speakers - be extra cautious!

Settings that work best in my system using XLR cables with two integrated amplifiers (Boulder 866 and Coda CSiB):

Mode: AMP

Gain: Low G

Volume: attenuated to -7db

It is absolutely key to match your outputs to inputs on impedance and voltage. Impedance on the output with TT2 is low enough to not be of any concern but the high output voltage is puzzling.

Experiment with settings and land on what works best for you in your system.
The TT2 is super quiet when it comes to noise floor and delivers excellent resolution and tone. Music emerges from a completely black backdrop and just floats. If you have equally capable amplification and speakers you will enjoy it even while listening at low levels.

Some complain about ergonomics, I have no issues there. The LED lit window and volume ball are kind of cool in a dark and can be dimmed. It’s impossible to memorize color to resolution mapping and in any case I can see the resolution of a streamed composition in my streamer app.

So overall awesome DAC! Enjoy!!!

I’d upgrade the streamer next.  The Innuos Zen or Zenith Mk3 should be a big upgrade and allow you to burn your CDs into it or maybe even transfer all your stored music directly from the Vault.  Innuos’ Sense app is also excellent so it won’t be a letdown coming from BluOS.  Best of luck.

When you are ready, add an M Scaler.  Makes a substantial improvement to my DAVE.  

@arvincastro I’ll add, looking at your system, depending on how much you are willing to spend on the next upgrade, your weak links are:

1. Preamp - the LS7 was a pretty good preamp back in its day. However current Audio Research line of preamps is amazing. They’re quiet, dynamic and transparent. Picking up LS28 will help you get the best out if your new DAC

2. Amps - pair the new preamp with a more modern amp, solid state or tube.

3. streamer - you can get away with your current one but use USB into Chord DAC. Let the Chord clock do most of the work. Eventually pick up a good streamer like Innuous or Aurender

I owned ARC LS-15, LS-16, LS-25, Ref1 and had on loan the latest Ref6. The Ref6 is dead quiet for a tubed pre and sounds incredible. You want smooth and big sound with those Kefs.
Just some thoughts…

I have the Zen MK 3 and I’ve kept my Node 2i, I really like the voicing (not the DAC) of the Node as an alternative to the Innuos both feed into my Denafrips T2 12 and both sound great. The Bluesound OS is good, overall it’s not as good a streamer as my Zen MK 3, but as I said I appreciate its voicing/sound, and I like it as an alternative streamer. I’ve got 2 nice CD transports, they each have their own sound signature, both very good so I kept both, I like sonic options I guess.