Principal hierarchies of infinite-dimensional Frobenius manifolds: the extended 2D Toda lattice

We define a dispersionless tau-symmetric bihamiltonian integrable hierarchy on the space of pairs of functions analytic inside/outside the unit circle with simple poles at $0$/$\infty$ respectively, which extends the dispersionless 2D Toda hierarchy of Takasaki and Takebe. Then we construct the deformed flat connection of the infinite-dimen\-sional Frobenius manifold $M_0$ introduced by Carlet, Dubrovin and Mertens in Math. Ann. 349 (2011) 75--115 and, by explicitly solving the deformed flatness equations, we prove that the extended 2D Toda hierarchy coincides with principal hierarchy of $M_0$.