Original | Odaily Planet Daily (@OdailyChina)

Author | Nan Zhi (@Assassin_Malvo)

On July 5th, Liquidity aggregation investment strategy protocol Doubler announced that the Mainnet version Doubler Lite will be launched on Arbitrum on July 5th. At the same time, a 5-day "LiquidityAirdrop" event will be launched, distributing a total of 500,000 DBR Tokens. Airdrop can be obtained by holding C Token's Address.

Odaily will interpret how to participate in the Airdrop activity, analyze Doubler's business logic, and explain the operation process of the protocol in detail.

Airdrop Activities

Basic Information

• Airdrop quantity: 500,000 DBR;
• Deadline: July 10, 10:30 (UTC+8);
• Participation method: Hold C Token and distribute DBR according to the proportion of C Token held. The maximum Airdrop of DBR for a single Address is 1,000 coins;
• Issuance date: July 25th.

Detailed Process Explanation

• Enter the Doubler official website and have ETH or WETH (Arbitrum) ready
• Invest ETH in the Investment module to obtain C Token, E Token, and 10xToken (not available when the pool is in a floating profit state);

• The final DBR Airdrop amount is calculated based on the amount of C held. For example, if you invest 1 ETH as shown in the figure, you will receive 2866 C, accounting for 0.107% of the total supply, and you can get 537 Tokens. Readers can also exchange other Tokens for C Tokens to get a longer Airdrop.
• Whether to swap other 10xTokens and E Tokens for C Tokens, readers can refer to the following ideas:
• In order to obtain Airdrop, if there is a limited amount of ETH, it can be fully converted to C in order to obtain the maximum amount of Airdrop;
• While participating in the Airdrop, in order to use the protocol and benefit from it. For those who believe there will be a continuous fall, they can convert C Token to 10xToken after the Airdrop ends, at the point where they think the fall will stop, and wait for the profit to exit; for those who believe there will be a Reboundpump, they should immediately exchange for C Token after the Airdrop; E Token should be exchanged for 10xToken when readers think ETH will pump. In short, when there is a fall, try to go long to get 10x as much as possible, and then sell for profit. For the specific principles, please refer to the following text.
• Please note that a 2% fee is charged for asset investment, withdrawal, and conversion, which should be included in the cost calculation.

Doubler Overview

Doubler Lite consists of four main modules, and its specific operation process is more complex. Readers can simply keep an impression of the core concepts and read the next section:

• Martin's strategy: continuously invest in low-cost assets to drop the average cost when the price drops, and maximize profits when the price rebounds.
• Separation of income rights: separating the income rights and cost rights of assets, and tokenizing these rights.
• Adaptive Inflation Management: Ensure that the quantity of 10xToken remains at 10% of the total Market Cap (Pool Cap) of the pool through automatic Rebase.
• Dynamic Redemption: Adjust the quantity of redeemed Tokens dynamically based on the changes in Spot price and the average price of the mining pool, ensuring that the average price and the interests of other users in the mining pool are not affected.

Martin Strategy

The Martingale Strategy is a common gambling strategy that aims to compensate for previous losses and ultimately make a profit through doubling down.

For example, the initial bet is 10 yuan. The first bet is 10 yuan, and the total loss is 10 yuan after losing; the second bet is doubled to 20 yuan, and the total loss is 30 yuan after losing; the third bet is doubled to 40 yuan and won, with a final total profit of 10 yuan. In theory, the Martingale strategy will eventually be profitable, but it has the drawbacks of requiring a large amount of capital and poor ability to prevent black swan events (that is, the rapid rise in the amount of reinvestment after consecutive losses, while the probability of the casino losing continuously is not small).

Doubler applies the Martin strategy to encryption investment and solves the funding problem through crowdfunding. More funds are injected when the target falls a certain amount to achieve a rapid decrease in the average price. In the latest version of Doubler Lite, the specific point of bottom fishing is not restricted, and the purchase price is adjusted by the market through incentive mechanism.

Moving on to the next question: How should the profits from the ETH raised be split? How should the losses be calculated? In what form should the exit be made?

Asset Token: Income Right Separation

In Doubler Lite, for the assets injected into the liquidity pool, the protocol separates the ownership of cost and revenue into Cost Token and Revenue Token. The Token representing cost ownership is C Token, while the Token representing revenue is 10xToken, and E Token is also added, which can be converted unidirectionally into 10xToken.

Doubler has designed a complex system for Tokenmint and profit distribution, disregarding the specific processes and values. Simply put, it involves Crowdfunding funds catching the bottom of Token. When the value of Token exceeds the average price of the fund pool (for example, Ethereum goes from 3000 U and catches the bottom all the way to 2000 U, with an average cost of 2500 U, then rebounds to 3000 U), there is a profit space. Users can choose to divide the profit using 10xToken and C Token, with a larger portion going to long 10xToken and a smaller portion going to C Token.

Project Financing

On January 30, 24, Liquidity aggregation investment strategy protocol Doubler announced the completion of its seed round of financing, led by Youbi Capital, with participation from Bixin Ventures, Mask Network, Comma 3 Ventures, Pivot Labs, Continue Capital, Sanyuan Capital, Waterdrip Capital, DWF Ventures, Gate Labs, Formless Capital, MT Capital, and CatcherVC, and the specific amount of financing has not been disclosed for the time being.

Token Information

The total supply of DBR Tokens is 100,000,000, with the following specific allocations:

• Liquidity Incentive: 40%, used to reward community users who use this product. This plan will be launched on the Mainnet as needed;
• Ecological Fund: 15%, used to incentivize partners and communities that make significant contributions to the ecosystem, promoting a more stable and healthier rise curve;
• Investors: 15%, including 10% distributed at TGE, 3 months Lock-up Position, 24 months linear vesting;
• Community: 10%, used to incentivize early participants and supporters of the Testnet ITO stage, 50% will be distributed during TGE, the remaining 50% will be distributed in Q3;
• Core Contributors: 10%, these Tokens will be reserved as rewards for current and future team members, 0% distributed during TGE, 6 months Lock-up Position, 8 quarters linear vesting;
• Advisor: 5%, 0% unlocked at TGE, 6-month Lock-up Position, 24-month linear vesting;
• Marketing and Working Capital: 5%, 10% distributed during TGE, with a linear vesting period of 24 months.

In conclusion, the initial circulation ratio is (15% * 10% + 10% * 50% + 5% * 10% ) = 7%, that is, the initial circulation of 7 million Tokens, if calculated at a unit price of 1 US dollar, the Airdrop activity will distribute a total of 500,000 US dollar Tokens.

Mechanism Detailed Explanation

10xToken

10x is the profit Token directly from Doubler. The maximum quantity of 10xToken is 10% of TVL (For example, if there are 10 ETH in the pool with a price of $3000, the total quantity of 10xToken is 10 × 3000 × 10% = 3000, which will change with factors such as ETH price and the impact on Token pool TVL). The difference between the actual issuance quantity and the maximum quantity is called the 'unissued part', which can be converted by E Token.

• When the average price of the token pool is less than the Spot price (i.e., it is currently in an overall profitable state), users will not receive 10x returns on their invested assets.
• When the average price of the Token pool is greater than the Spot price (i.e., currently in an overall loss state), Tokens will be distributed according to the formula below, where S is the Spot price, AVG is the average price of the Token pool, and Q is the amount of ETH invested.

Taking the average pool price of $3000 as an example, the amount of 10xToken obtained by investing 1 ETH is shown in the figure below. The lower the Spot price, the longer the 10xToken obtained. This is also the "no specific catch the bottom point is restricted, but the purchase price is adjusted by the market through incentive mechanism" mentioned earlier. The greater the price deviation, the longer the 10x obtained, and the longer the profit will be when it returns to the water in the future.

C Token

When the pool is in surplus, the amount of C Token to be returned will be calculated based on the average price of the pool multiplied by the amount of ETH invested;

When the pool is floating in deficit, the amount of C Token to be returned will be calculated based on the Spot price × the amount of ETH invested;

E Token

When the pool is in a floating profit, the number of E Tokens to be returned will be calculated based on the Spot price multiplied by the input ETH divided by the average price of the pool.

When the pool is at a loss, the number of E Tokens to be refunded will be calculated based on the input of ETH.

E Token can be exchanged unidirectionally for 10xToken, with the exchange amount being (the amount of E Tokens invested ÷ the total amount of E Tokens) × the number of unissued 10xTokens. As this is a unidirectional exchange, the timing of minting 10 times the Tokens has a significant impact on the final return.

Profit Mechanism

From the above conversion formula, it can be seen that the more long the pool loses, the more long the user will get 10xToken by investing ETH, and the less C Token will be. The same rule applies in the opposite situation. Therefore, the balance point is when the pool is neither profitable nor losing, at which point the marginal acquisition ratio of C Token and 10xToken is 10:1, meaning the individual value of both is 1:10.

The rule set by Doubler is that users need to submit the corresponding two types of tokens according to the actual 10x and C ratio in the token pool in order to withdraw ETH. As shown in the figure below, the current C:10x in the total pool is 10.322, so when redeeming, the two types of tokens are also required in the same proportion. The redemption value is (redemption token amount÷total amount×TVL) = 1000 ÷ 257272 × 257272 = $10000.

As the degree of floating profit increases, the value of C Token will continue to decline, while the value of 10x will continue to rise. Some simplified algorithms believe that after exceeding the cost price, the profit is intuitively divided by 10x in proportion, which is easier to understand.

In fact, Doubler also has inflation and deflation mechanisms, which have an impact on profit calculation and the timing of E Token conversion to 10xToken. This article will not delve into it, but overall it means "buy low" when selling high, including acquiring 10xToken when it falls, consuming 10xToken to extract from the pool when it pumps, or selling C Token when it falls and acquiring C Token when it pumps. The specific profit targets and operation points need to be adjusted according to the reader's actual situation.

Conclusion

Doubler is more user-friendly for catch the bottom users who are good at calculations, it can drop their leverage risk and enhance their profits. However, the overall design of the protocol is very complex, and most users find it difficult to calculate the gains and losses clearly, making it difficult to popularize. But based on the current level of capital participation, Airdrop still has high participation value.