10x Token
Rights: Ownership of the appreciation of crypto assets within the pool, as a Yield Token.
Last updated
Rights: Ownership of the appreciation of crypto assets within the pool, as a Yield Token.
Last updated
For inputs above the AVG Price (average price), C is still minted at the AVG Price. The quantity of minted 10x is based on the current ratio of 10x to C. The formula for calculating the number of 10x tokens minted is as follows:
E.g. In the ETH pool, if the spot price of ETH is $3,100, the pool's AVG price is $3,000, and the current ratio of 10x to C is 1:10, then inputting 1 ETH would mint 3,000 C tokens and 300 10x tokens.
For inputs below the AVG Price, The formula for calculating the number of 10x tokens minted is as follows:
E.g. In the ETH pool, if the spot price of ETH is $2,900, the pool's AVG price is $3,000, and there are a total of 10 ETH in the pool with a 10x to C ratio of 1:10, then inputting 1 ETH would mint 2,900 C tokens and 386.7 10x tokens.
At the initiation of the pool, the ratio of 10x to C is 1/10, i.e., 10x = C/10.
Ownership of Future Appreciation.
Users holding 10x tokens own the rights to the future appreciation of the pool's assets. When the Spot Price exceeds the pool's Avg Price, the pool's assets generate appreciation, and 10x token holders will receive corresponding returns. They can choose to settle their earnings at any time.
Flexible, non-liquidating, and auto-leveraging asset characteristics.
As shown in the above chart, we compare 10x tokens with two common investment methods in the crypto market: futures and spot trading. The chart demonstrates that 10x tokens offer returns close to ten times those of long futures, while the risk is only slightly higher than that of spot trading. All earnings in the Doubler pool come from the appreciation of assets achieved by reducing the pool's Avg Price.
Due to the support of underlying assets, the quantity of assets in the pool remains unchanged regardless of price fluctuations, fundamentally different from the speculative logic of futures derivatives. Therefore, holding 10x tokens allows users to enjoy nearly 10x leverage returns but only bear risks slightly higher than spot market volatility.
As shown in the chart above, 10x tokens exist in two states.
when the Avg Price is higher than the Spot Price, 10x tokens have only expected value.
When the Spot Price is higher than the Avg Price, the pool generates profits, and 10x tokens gain actual value.
This is similar to at-the-money and out-of-the-money options in the options market, where the critical point is the strike price. For 10x tokens, the critical point that distinguishes actual value from expected value is the Avg Price.