The crowdfunding version of Martin Strategy Doubler launches an airdrop campaign to explain in detail the participation strategy and agreement business
The total value of the airdrop tokens is about hundreds of thousands of dollars. $2.6 million of capital has participated, and 2% wear on entry and exit from the market.
Writer: Nam Yeong
On July 5, the liquidity aggregation investment strategy agreement Doubler announced that the main network version of Doubler Lite was released on July 5ArbitrumLaunched on. At the same time, a 5-day “Liquidity Airdrop” campaign will be launched, and a total of 500,000 DBR tokens will be distributed. Addresses that hold C tokens can obtain airdrops.
In this article, Odaily will explain how to participate in airdrop activities, briefly analyze Doubler's business logic, and analyze the protocol operation process in detail.
Airdrop campaignbasic information
Number of airdrops: 500,000 DBR;
Deadline: July 10 at 10:30 (UTC+ 8);
Participation method: Hold C tokens, distribute DBR according to C token holding ratio, and airdrop up to 1,000 DBR per address;
Release date: July 25.
Detailed explanation of the process
Go to Doubler's website and prepare ETH or WETH (Arbitrum)
Invest in ETH in the Investment module to get C tokens, E tokens, and 10x tokens (not obtained when the pool floats);
Finally, the DBR airdrop amount is calculated based on C holdings. For example, by investing 1 ETH in the image above, 2,866 C units are obtained, accounting for 0.107% of the total amount, and 537 tokens can be obtained. Readers can also swap other tokens for C tokens to get more airdrops.
Readers can refer to the following ideas on whether to exchange other 10x tokens and E tokens for C tokens:
Just to get airdrops, then in the case where ETH is limited, they can all be replaced with C to obtain the maximum amount of airdrops;
While participating in the airdrop, obtain its benefits in order to use the agreement. If you think it will continue to decline, you can convert C tokens to 10x tokens after the end of the airdrop campaign and wait for the floating profit to withdraw; if you think they will rebound and rise, exchange them for C tokens immediately after the airdrop ends; and E tokens should be exchanged for 10x tokens when readers think ETH is rising to a high point. Simply put, it is to get as much 10x as possible when it falls, and then sell at a profit. See later for the details.
Note that a 2% handling fee is charged for investing in assets, withdrawing assets, and converting assets, which should be included in the cost calculation.
Doubler Overview
Doubler Lite consists of four main modules, and its specific operation process is complicated. Readers can only get an impression of the core concepts and read the next section:
Martin's Strategy: Continuously invest in low-cost assets when prices fall to reduce average costs and maximize profits when prices rebound.
Separation of revenue rights: Separating the right to income from the right to cost of an asset, and tokenizing these rights.
Adaptive inflation management: Ensure that the number of 10x tokens remains at 10% of the pool's total market cap (Pool Cap) through automatic rebasing.
Dynamic redemption: According to changes in the spot price and the average price of the fund pool, the number of redeemed tokens is dynamically adjusted to ensure that the average price and the interests of other users in the pool are not affected.
Martin Strategy
The Martingale Strategy (Martingale Strategy) is a common gambling strategy. The basic idea is to double investment to make up for previous losses and ultimately obtain profits.
For example, the initial bet is 10 yuan; the first time you bet 10 yuan, the total loss is 10 yuan; the second time you double your bet of 20 yuan, you lose a total loss of 30 yuan; the third time you double your bet of 40 yuan and win, the final total profit is 10 yuan. Martin's strategy is theoretically profitable in the end, but it has the disadvantages of requiring a large amount of capital and poor ability to prevent black swans (that is, the amount of money invested quickly rises after losing money continuously, and the probability that casinos lose continuously is not small).
Doubler uses Martin's strategy in crypto investments and solves capital problems through “fund-raising”. Every time the target falls to a certain extent, it injects more bottom-up capital to achieve a rapid decline in the average price. In the latest version of Doubler Lite, there are no restrictions on specific bottom points, but the market adjusts the purchase price by itself through an incentive mechanism.
Moving on to the next question: How do you split the amount of money you make when you raise funds to buy ETH? How do you calculate losing money? What exactly is the form of withdrawal?
Proof of assets: separation of income rights
In Doubler Lite, for assets injected into the fund pool, the agreement separates ownership of costs and benefits into cost tokens and revenue tokens. The token representing cost ownership is a C token, while the token representing revenue is a 10x token, and E tokens are added, which can be converted into 10x tokens in one direction.
Doubler designed a complex system for coin minting and revenue distribution. Leaving aside specific processes and values, the simple understanding is that after crowdfunding undercuts the token, the value of the current coin exceeds the average price of the fund pool (for example, Ethereum bottomed out from 3000 U to 2000 U, and then rebounded to 3000 U). At this time, profit margins appeared. Users can choose to use 10x tokens and C tokens to split profits. The unit amount of 10x tokens is much divided by C tokens. Score less.
Project financing
On January 30, '24, Liquidity Aggregation Investment Strategy Agreement Doubler announced the completion of a seed round led by Youbi Capital, Bixin Ventures, Mask Network, Comma 3 Ventures, Pivot Labs, Continue Capital, Sanyuan Capital, Waterdrip Capital, DWF Ventures, Gate Labs Institutions such as Formless Capital, MT Capital, and CatcherVC participated, and the exact amount of financing was not disclosed.
Token Information
The total amount of DBR tokens is 100,000, and the specific distribution is as follows:
Liquidity incentive: 40% to reward community users using the product. The program will be launched as needed once the main network is online;
Ecological fund: 15% to incentivize partners and communities that make significant contributions to the ecosystem to promote a more stable and healthier growth curve;
Investors: 15%, of which 10% is issued at TGE, locked for 3 months, linear ownership for 24 months;
Community: 10% to incentivize early participants and supporters of the ITO phase of the testnet, 50% distributed at TGE, and the remaining 50% distributed in the third quarter;
Core contributors: 10%, these tokens will be reserved for current and future team members as rewards, 0% will be distributed at TGE, locked for 6 months, and linear attribution for 8 quarters;
Advisors: 5%, 0% unlocked at TGE, 6-month lock-up, 24-month linear ownership;
Marketing and working capital: 5%, 10% distributed at TGE, 24 months linear ownership.
In summary, the initial circulation ratio was (15% * 10% + 10% * 50% + 5% * 10%) = 7%, that is, 7 million tokens were initially distributed. If calculated at the unit price of 1 US dollar, the airdrop campaign distributed a total of 500,000 US dollars in tokens.
Detailed explanation of the mechanism10x tokens
10x is Doubler's direct revenue token. The maximum number of 10x tokens is 10% of the TVL (for example, if there are 10 ETH in the pool, the unit price is 3000 USD, then the total amount of 10x tokens is 10 × 3000 × 10% = 3000, which will change with factors affecting the TVL of the token pool, such as changes in the price of ETH). The difference between the maximum amount in operation and the actual amount issued is called the “unissued portion” and can be converted into E tokens.
When the average price of the current coin pool is less than the spot price (that is, it is currently in an overall profitable state), users will not get 10x for the assets invested.
When the average price of the current coin pool is greater than the spot price (that is, currently at an overall loss), tokens will be distributed according to the following formula, 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 $3,000 as an example, the 10x tokens obtained by investing 1 ETH are shown in the following figure. When the spot price is lower, you can get more 10x tokens. This is also “not limited to specific bottom points, but the market adjusts the purchase price by itself through an incentive mechanism”. The greater the price deviation, the more 10x you get, and the more profit you make when you return to the water in the future.
C token
When the pool floats, the amount of C tokens returned will be calculated based on the average price of the pool times the amount of ETH invested;
When the pool loses money, the amount of C tokens returned will be calculated based on the spot price x the amount of ETH invested;
E token
When the pool becomes profitable, the amount of E tokens returned will be calculated based on the spot price × ETH invested ÷ the average price of the pool;
When the pool loses money, the amount of E tokens returned will be calculated based on the amount of ETH invested.
E tokens can be exchanged for 10x tokens in one direction, and the amount of exchange is (number of E tokens invested ÷ total amount of E tokens) × 10x number of unissued tokens. Since it's a one-way exchange, the timing of minting 10x the tokens has a big impact on the final return.
Profit mechanism
As can be seen from the exchange formula above, when the pool loses more, the more 10x tokens the user earns in ETH, and vice versa, there is a similar rule. Therefore, when the pool is in a state of no profit or loss, it is a balance point. At this time, the marginal acquisition ratio of C tokens and 10x tokens is 10:1, which means that the single value in the balance between the two is 1:10.
The rule set by Doubler is that users need to submit the corresponding two tokens according to the actual 10x and C ratio in the token pool before they can withdraw ETH. As shown in the figure below, the C:10x in the current total pool is 10.322, so the same ratio of two tokens is also required for redemption. The redemption value is (amount of redeemed tokens ÷ total amount × TVL) = 1000 ÷ 257272 × 257272 = 10,000 dollars.
As the level of volatility increases, the value of the C token will continue to decline, while the value of 10x will continue to rise. Some simplified algorithms think that after exceeding the cost price, the profit split by 10x is intuitively easier to understand.
In fact, Doubler also has an inflationary and deflation mechanism, which has an impact on profit calculations and the timing of exchanging E tokens for 10x tokens. This article doesn't explain it in depth, but in general, it is “high selling 10x tokens, spending 10x tokens when rising, or selling C tokens when falling, and getting C tokens when rising, etc. The specific profit goals and operating points need to be changed according to the actual situation of the readers.
conclusions
Doubler is friendly to bottom scavenger users who are good at calculation, and can reduce their leverage risk and enhance returns. However, the overall design of the agreement is very complicated, making it difficult for most users to clearly calculate gains and losses, and it is difficult to popularize it. However, according to the current amount of financial participation, the airdrop still has a high participation value.
