Doubler Lite: Revolutionizing DeFi with Yield Right Separation and Martingale Strategy | TKX Weekly
by @uuwagyuu
sponsor TKX CAPITAL
Blockchain technology enables financial products that traditional systems can’t offer. Its decentralized nature removes intermediaries, reduces costs, and increases efficiency, allowing for complex strategies and greater accessibility. Today, we’ll explore Doubler Lite, a product designed to help users minimize risk. Doubler Lite uses a martingale strategy on a transparent, automated, and secure platform to manage crypto assets effectively.
Intro
Doubler Lite is an asset yield rights separation protocol that utilizes a martingale strategy to capture external returns. It distributes profits and losses through tokenized yield rights. Designed to provide risk hedging and return optimization, Doubler Lite offers innovative solutions for asset management and alternative trading assets for secondary markets. By eliminating intermediaries and reducing costs, Doubler Lite enables users to minimize risks and maximize returns, making it a practical and efficient tool for managing and growing crypto investments.
What is Marin Strategy?
Doubler Lite uses a martingale strategy to optimize asset management. This involves buying more assets when prices drop, lowering the overall average cost. When prices rebound, the assets generate profits.
How it works
Overview
Doubler Lite is a DeFi protocol that manages crypto assets by dividing them into three types of tokens: C Tokens, 10x Tokens, and E Tokens.
Token Types
- C Token: Represents the cost of assets.
- 10x Token: Represents future gains.
- E Token: Allows minting more 10x Tokens.
Mechanism
Martingale Strategy
Doubler Lite employs a martingale strategy, which involves buying more assets when prices drop to lower the average cost, then profiting when prices rise.
Yield Right Separation
For each asset added to the pool, the protocol separates the ownership into C Tokens (cost) and 10x Tokens (yield). The E Tokens represent rights to mint future 10x Tokens.
Managing Token Supply
To maintain balance in the Doubler Lite system, the protocol adjusts the supply of 10x Tokens through mechanisms of inflation and deflation based on changes in the pool’s value (Pool Cap).
Inflation
When the pool’s value (Pool Cap) increases, more 10x Tokens are created to ensure the total number of 10x Tokens is 10% of the Pool Cap.
Deflation
When the pool’s value decreases, the number of 10x Tokens is reduced to keep the total number of 10x Tokens at 10% of the Pool Cap.
Deflation Process:
- The protocol first reduces the to-be-issued 10x Tokens.
- If further deflation is needed, the circulating 10x Tokens are proportionally reduced until the total matches 10% of the Pool Cap.
This inflation and deflation mechanism ensures that 10x Tokens reflect the value of the pool accurately, and the to-be-issued 10x Tokens act as a buffer to absorb minor fluctuations in the pool’s value, protecting circulating 10x Tokens from frequent changes.
Dynamic Redemption
Dynamic Redemption allows users to redeem their assets at any time, with the value and quantity of the redeemed tokens adjusted based on market conditions and the pool’s average price (Avg Price). This ensures that the Avg Price and the interests of other pool users are not adversely affected.
Example:
- Redeeming Below Average Price: If the Avg Price is greater than the Spot Price, the pool is in a loss state. The redemption value is calculated using the Avg Price, and burning 10x tokens does not increase the redemption value since there is no profit.
- Redeeming Above Average Price: If the Spot Price is greater than or equal to the Avg Price, the pool is profitable. The redemption value is based on the Spot Price, and burning 10x tokens increases the redemption value due to generated profits.
Summary
Doubler Lite is a sophisticated yet accessible DeFi protocol designed to manage and grow crypto assets effectively. The protocol demonstrates innovation and logical consistency by harnessing the collective power of retail investors through an on-chain martingale strategy. It introduces various mechanisms to attract participants to the strategy pool, effectively spreading costs and profiting from rebounds under most price behaviors of mainstream cryptocurrencies like BTC and ETH. Therefore, this is a protocol worth understanding and trying out.
