Double is a new DeFi protocol that doubles reward fees earned by users.
The protocol enables projects to launch a new token by just supplying their native token on a decentralized exchange, in exchange for giving 100% of the trading fees to people who supply the other assets.
Projects can list their tokens on decentralized exchanges for free, and anyone else can earn double the reward fees by providing liquidity without impermanent loss.
Disclaimer: The following article is for informational purposes only. It should not be taken as an endorsement, investment, tax, financial, or other advice. Double is not built or maintained by Valora nor does Valora receive any payment or other form of compensation from Double. This article simply aims to provide an explanation of how people around the world are using the Valora wallet to access and explore decentralized applications on the Celo network. As with any Web3 solution, you alone assume the sole responsibility of evaluating the merits and risks associated with using any third-party decentralized application.
What is Double?
Double is a new DeFi solution tackling an important problem when it comes to launching new tokens on decentralized exchanges. Double makes it easier for projects to add their tokens to decentralized exchanges and makes it more profitable for other people to help them do it by doubling the fees users can earn from providing liquidity.
How does it work?
The amount of an asset available on an exchange is called “liquidity”. The more liquidity there is on an exchange, the easier it is for people to swap or trade without disrupting the current price of the asset.
For example, if only a small amount of liquidity is available on an exchange, it’s difficult to make even a small buy without driving up the price - if the asset is even available at the price you want.
As a result, “Liquidity providing” is a common way of earning yield with cryptocurrency. Typically, this means lending equal amounts of two different cryptocurrencies to a decentralized exchange like Uniswap. In return for providing liquidity, the lenders receive a percentage of the fees charged from swaps between those two assets.
However, the process of providing liquidity on a decentralized exchange - specifically, requiring equal amounts of the two different cryptocurrencies - makes it expensive for new crypto projects to list their own tokens for the first time. Not only do these projects have to supply their own token - they also have to purchase, hold, and supply an equal amount of another token, as well.
For smaller projects with limited budgets this can be one of the highest costs when launching a new token. To solve this, Double has created a system where projects can list their own token for free, by giving all of the trading fee rewards to the people who contribute the other assets.
It’s a win-win; new projects are able to list their tokens for free, while investors receive double the trading fees associated with these new projects.
How do I get started?
To start using Double (Only deposits are available for the Double mainnet rewards program), you will first need to connect to Valora. If you haven’t already - you can download the Valora app from the Apple App or Google Play store here. It only takes a few simple steps to set up your wallet.
1. Launch Valora
Launch Valora on your smartphone
Select Double from the dapps page
Log in with Wallet Connect by clicking “Connect to a wallet” and then select Valora
2. Deposit into Double
Select Deposit to begin
Enter the amount that you want to supply
Confirm the transaction
What opportunities do you have with Double?
During the month of August leading up to the Double genesis launch, scheduled for September 1st, all users will be able to receive bonus Double tokens. All you have to do is deposit any token issued natively on or bridged onto the Celo blockchain, into the Double smart contract to qualify. The top 100 wallets will receive 1 DDC token and the top 100,000 wallets will receive 100 DDJ tokens.
Links to participate in this Double Genesis Event are listed below:
After Double launches, users who want to earn fees will be able to earn double the trading fees by providing liquidity on the protocol!
Why we’re excited
Double brings true innovation to decentralized exchanges, benefiting both new projects and Valora DeFi users alike.
This new protocol has the potential to accelerate growth of the entire Celo ecosystem by making it easier for new projects to launch tokens, while also giving every day users the ability to earn more with their crypto.
Stay tuned and make sure to follow @Valora and @double2winwin to keep up with the latest announcements. And if you haven't already, download the Valora app today here to start exploring DeFi opportunities with Double!
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