Doubler is designed to establish an innovative and inclusive financial model through smart contracts, aiming to minimize investment risks in cryptocurrency ventures.
Based on an analysis of historical trends in high-quality cryptocurrencies such as BTC and ETH (referred to as BTC for consistency), it has been observed that regardless of the purchase price, users can achieve profitability by applying a "martingale" strategy. This strategy involves doubling down on investments if the cryptocurrency experiences a decline, effectively lowering the average entry price and capitalizing on price rebounds. The "martingale" approach has long been employed in the financial industry.
However, executing a comprehensive "martingale" strategy necessitates two conditions:
Having unlimited capital, implying the ability to create currency at will.
Unlimited market capacity capable of accommodating substantial buying and selling volumes.
Considering the practical challenges of fulfilling these conditions, Doubler has been developed utilizing blockchain smart contract technology to embody the essence of the "martingale" concept within the realm of cryptocurrencies.
Doubler harnesses the power of market aggregation, enabling strict adherence to the "martingale" strategy by adding to BTC positions during downturns. This process aims to bring the average purchase price of BTC in the Doubler pool closer to the current market price of BTC, ultimately leading to profitability. Please refer to the following diagram:
When a user creates a Doubler pool, the smart contract utilizes Chainlink to fetch the current price of BTC, which is recorded as the cost price. If the price of BTC falls below the user-defined threshold, the pool is opened for additional participants to deposit their BTC. An oracle is used to read the price of the deposited BTC and store it in the smart contract. However, the deposited quantity cannot exceed a predetermined multiple of the previous layer, as depicted in the diagram. This allows for controlled participation and risk management.
In the depicted scenario, the pool is viewed as a collective entity. As more BTC with lower cost prices is deposited into the pool, the average cost price of BTC within the pool steadily decreases. This reduction in average cost is a result of the "martingale" strategy, which involves adding more BTC to the pool at lower prices during downward price movements. As a result, the pool's average cost price converges towards the current price of BTC, enabling potential profitability when the BTC price rebounds.
The Doubler protocol aims to ensure the interests of all parties involved. If the current price of BTC surpasses the target price set by the pool creator, the pool achieves its profit objective. During settlement, the BTC within the pool is divided into two portions: the cost portion and the profit portion. This division ensures that the accumulated value of BTC in the pool covers the total investment costs of all participants and generates profits. The protocol is designed to provide a fair and transparent mechanism for participants to benefit from the price movements of BTC while mitigating risks.
Based on the principles outlined earlier, the cost portion of BTC after settlement is allocated in a manner that ensures participants who joined the pool by purchasing BTC at its cash value do not suffer any losses. Referring to the diagram, if a user joined the pool with 1 BTC when the cash value of BTC was $60,000, and subsequently the BTC price dropped to $10,000, during the settlement when the protocol reaches its target price, the user would receive a total of 6 BTC, precisely matching their initial cash investment.
The calculation formula for the settlement quantity is as follows:
Settlement Quantity = Initial Price * Initial Quantity / Settlement Price
To incentivize users to actively join existing pools, we allocate the profit portion after settlement as incentives to the final group of users who join the pool. This ensures the continuous operation of the pool in accordance with the parameters set by the creator. Please refer to the diagram for specific allocation rules.
Based on the provided diagram, it is evident that the capacity of each layer depends on the initial investment quantity made by the pool creator. When the capacity of a layer falls below 200 times the initial injection quantity, the providers of 50% of the settlement layer's quantity will receive the entire profit. Conversely, if the layer's capacity exceeds 200 times the initial injection quantity, regardless of subsequent capacity increases, only the providers of BTC based on 200 times the initial injection quantity, who join the final layer, will receive the complete profit. The profit distribution will be carried out using a weighted average method. (Note: The value of 200X units mentioned here is an illustrative value; in practice, the pool creator sets this value in advance.)
The calculation formula for your allocated profit is as follows:
Your Profit Allocation Quantity = Total Pool Profit / Winning Units * Your Winning Units
wq=pa/uq\*yq
This distribution mechanism serves two key purposes:
As a pool creator, you can utilize any cryptocurrency purchased at any time and price to establish a pool. If the value of the cryptocurrency increases, the returns from holding the cryptocurrency will not diminish. Conversely, if the cryptocurrency value declines, you can leverage the power of the market to significantly reduce your average holding cost, thereby acquiring more cryptocurrency without the need for additional investment. This effectively mitigates the risks associated with cryptocurrency investment. The introduction of Doubler transforms cryptocurrency investment, which is inherently high-risk, into an exceedingly robust financial investment option.
As a pool participant, you have the freedom to select and participate in any pool at any given time. If you are fortunate enough to join a pool that reaches its target price, you stand to gain substantial returns. On the other hand, if the price drops after you have joined, you, like the pool creator, will accumulate a greater quantity of cryptocurrency during subsequent declines, ensuring that your cash value remains intact. This represents an exceptionally lucrative investment opportunity.
The flexibility of participating in Doubler assets:
In the Doubler protocol, users have the ability to redeem their crypto assets at any time in the majority of cases. Once a pool is successfully created, it goes through two states: "In Progress" and "Settlement Completed."
"In Progress" State:
During the "In Progress" state, users in all layers, except for the participants in the final layer, have the freedom to redeem their cryptocurrency assets. Participants in the final layer can choose to wait until the pool reaches the target price or continues to decline before redeeming their assets. It is important to note that if a user chooses to redeem their assets during the "In Progress" state, they can only redeem the quantity they initially invested. Opting for redemption at this stage implies forfeiting any additional entitlement to future benefits when the pool reaches the target price.
It is worth noting that as long as the pool remains in the "In Progress" state, any redemption action by users will cause the average price of the pool to decrease. This is highly advantageous for users who choose to continue their participation in the pool.
"Settlement Completed" State:
When the current price surpasses the target price of the pool, the pool immediately transitions from the "In Progress" state to the "Settlement Completed" state. In the "Settlement Completed" state, all users can redeem the cryptocurrency assets they invested. (The calculation formula for redemption quantity follows the explanation provided earlier.)
The mechanism of Doubler ensures that users have flexibility in their investments regardless of the timing, pricing, or identity associated with their participation. It is akin to a demand deposit account in a bank, while offering the potential for returns that far exceed those of traditional bank deposits.
Through Doubler, our objective is to enhance the reliability of cryptocurrency investments and promote the transformation of mainstream cryptocurrencies such as BTC and ETH into safe-haven assets. Only by achieving this can we foster wider acceptance of cryptocurrencies. Doubler is not merely a DeFi product; it represents a movement, a battle against market manipulators. We will no longer passively tolerate their unscrupulous market manipulations. Instead, we strive to empower market forces to act as a divine entity, justly judging their actions and ensuring that those engaged in malicious market manipulation suffer significant losses.
About Doubler
Website: www.doubler.pro
Twitter: https://twitter.com/doubler_pro