Introduction
Last updated
Last updated
Double is an essential liquidity infrastructure for L1, ETH L2 & BTC L2. To thrive, L1/L2 chains must attract projects into their blockchain ecosystems. One important infrastructure these chains must have is AMMs, which are the go-to solutions for ecosystem projects to list their tokens. However these chains are missing one critical infrastructure - the go-to liquidity solution. Without liquidity, project tokens are in trouble and projects will suffer. Double is the go-to on-chain liquidity solution for AMMs and is the missing liquidity infrastructure for L1/L2.
As shown in the diagram above, Double is not an AMM. It is an AMM LP-side only innovation that complements existing AMMs in L1/L2 blockchain ecosystems. So one additional benefit that Double can offer to L1/L2 chains is that it will increase TVL and indirectly generate more swaps on those AMMs in the ecosystems.
At a high-level, Double is a smart contract based protocol that enables a win-win collaboration between two sides of an AMM pool <token, capital>. With Double, capital providers only need to supply 50% of the AMM pool on the capital side but get 100% of the yields earned by the LP position, and token holders supply the other 50% of the AMM pool on the token side but only 0% of the yields earned by the LP position. Capital providers win because they effectively double the ROI while at the same time reduce the risks. Token projects win because they deepen the liquidity for their tokens on AMMs without supplying the capital which they don't have.
Like AMMs, Double is permissionless and trustless. Any holder of any token can deposit tokens into Double on the token side. Any capital provider can supply capital into Double on the capital side, either retail or institution users. The smart contracts enforces all the rules and capital providers don't need to trust token holders and vice versa.
Double effectively democratizes the CEX market making agreement model for AMMs. It offers the same benefits (free loan + option) exclusive to CEX pro market makers to every 300k+ AMM LPs. As a result, Double solves liquidity challenges for AI + crypto, LST/LRT, DePIN, RWA, as well as all other token projects. In addition, Double attracts massive capital into L1/L2 blockchains & AMM ecosystems by offering positive risk-adjusted yields to capital providers.
