We’re excited to bring you a conversation with Doubler, a yield protocol that recently launched an audit with Code4rena.
We chat about the strategies used by Doubler, using TradFi concepts in DeFi, and what they’re looking for from Wardens in this audit. Check it out!
Can you tell us a bit about Doubler?
Doubler is a strategy-centric Yield Protocol platform that reduces user investment risk and increases returns through innovative strategy products.
The Martingale Strategy is Doubler's first innovative strategy product designed to allow crypto asset holders to earn additional investment income without losing cash value by aggregating market liquidity.
Doubler utilizes the Martingale system, where the value of investments increases after losses. How is the strategy applied by the protocol?
The Martingale strategy refers to doubling the amount of money an investor bets each time he or she experiences an investment failure. Once successful, it not only covers all previous losses but also earns a profit on the initial bet. However, in practice, the perfect operation of the Martingale strategy requires one condition: the possession of unlimited funds.
Doubler cleverly solves the problem of unlimited funds by aggregating market liquidity on the chain through smart contracts. The Doubler strategy incorporates the doubling principles of the Martingale strategy into an open pool of shared liquidity called the Doubler Pool.
In this way, the creator of the pool presets key parameters such as profitability targets, minimum allowable participation, profit sharing, etc. Investors who choose to join the pool will share the risk and return together, overcoming the limitations of the size of a single investor's capital. This approach meets the needs of risk-averse participants and profit-seeking speculators, ensuring that the cash value of all participants does not reduce simultaneously while earning more income.
It’s always interesting to see tradfi concepts – like Martingale – find new life on-chain. Are there any other lessons from traditional finance you expect to see utilized in DeFi?
Yes, we would love to see more traditional experiences combined with on-chain products in DEFI. For example, the familiar RWA concept, etc. Of course everything just started, as you can see, Doubler is a strategy-centered Yield protocol platform, the on-chain martingale strategy is the first product launched, at the same time, we have already begun to explore other strategy products, not limited to traditional and non-traditional, can be effective and meet the needs of the community is a qualified good product. Of course, we welcome anyone who is interested to discuss with us.
Sponsoring a competitive audit showcases Doublers commitment to security. Do you have any advice to protocols on the fence about opening up their codebase?
When a protocol is already on the fence, it is recommended to open source the repository immediately.
In many people's opinion it's not exciting to open source a protocol, most of them do it passively because if they don't open source they will face community skepticism which will affect the GTM.
On the contrary, we think it's cool to proactively open source code as a positive rather than a negative thing, and Doubler also plans to open source code and start a bug bounty program when the mainnet launches, and we hope that this proactive attitude will help to keep the code safe with the developers in the community.
We’re a quarter of the way through 2024 already, any predictions for the rest of the year in Web3?
I'm optimistic. I believe that Web3 will reach a new level this year with the halving of Bitcoin, the approval of ETFs, and the Fed's interest rate cut. With an increasingly compliant startup environment, technological innovation, and abundant funding, Web3 will be accepted by more people around the world.
One last question, where is the best place for Wardens to learn more about Doubler?
Wardens can follow us on our official Twitter or Discord.
Links to our projects are listed below:
Official website: https://testnet.doubler.pro/
Twitter:https://twitter.com/doubler_pro
Discord:https://discord.com/invite/doubler
Medium:https://medium.com/@doubler.pro
The Ones in the Arena spotlights emerging and established DeFi projects and their founders, with an eye to celebrating and learning from them. The series’ name is inspired in part by Teddy Roosevelt’s famous quote, which has a central place in Code4rena’s philosophy.
