DXventures Opportunity: Provide investment grant and incubate Double

Tldr; DXventures has the opportunity to participate early in what could be a key building block of the DeFi ecosystem. Support of the proposal post would signal a move towards a $100k investment grant into Double and an opportunity for close collaboration/incubation.

Background

Double is a decentralized co-op platform for AMM liquidity providing that will double LP investors’ return on invested capital while at the same time boost liquidity for projects’ tokens.

AMM trading volume has grown 50x-100x since early 2020 and has at least 30x-50x growth potential in the next 3-4 years. However, the whole AMM ecosystem is still immature and there are big pain points in AMM liquidity providing, where, due to 50:50 AMM pool design, projects lack capital and struggle to boost liquidity for their tokens, while LP investors lack tokens and incur friction, inefficiency and risk to convert capital into tokens so as to chase high APY. Double is a decentralized protocol that enables a win-win partnership between projects and LP investors, which will double LP investors’ return on invested capital while at the same time boost liquidity for projects’ tokens.

Details

Powers and Sky have been in contract with one of the founders Henry He, an experienced tech entrepreneur, over the past month. Double is an interesting product that ties in well with DXdao’s suite of products and also solves a big need in the DeFi space. Henry specifically reached out to DXdao because he is aware of our leadership in the DAO and DeFi spaces and is attracted to the community.

The idea would be to give a $100k investment grant to Double to support the audit and launch of Double. Double has a goal to receive an initial audit and then a secondary audit from a top 3 auditing firm.

DXdao would provide a grant and could also provide services to Double in exchange for future tokens. Separately, Double is currently raising funds using a SAFT from other investors. Double has a goal to acquire 500k-1m USD to be used for Audits, operations and potentially starting capital into the product.

There is a detailed private document about Double that has been shared by request only. If you have interest in this opportunity and would like to see more details, please let me know.
The Due Diligence Checklist that DXventures is using has also been completed around the opportunity. Available by request.

There has already been interest gauged by using a soft poll to pursue a $100k investment grant into Double while aiming to help incubate the project, with overwhelming support.

Based on the feedback and questions so far, we have received the following additional information from Henry at Double.

The testnet contracts are not verified yet. To verify, they have to upload the smart contract source code to etherscan which will make it public. They are not ready to make it fully public yet.

Double has 3 co-founders at the moment. All are technical and write code, both backend smart contracts and frontend. One cofounder has a PHD from UBC (university of British Columbia in Vancouver). He is also teaching blockchain class as Adjunct professor at UBC. And the 3rd cofounder is the best graduate student in his class. They believe that they have deep expertise in DeFi and tokenomics and have a solid team to execute.

Double will first launch on mainnet and will likely focus on the largest AMM at first. They will want to also support Swapr in the future. They are impressed by DXdao’s community and projects and would consider DxDAO as a strategic partner and investor.

Conclusion

Double would fit quite well in between Aqua and Swapr and solve a need in the space. If we think medium/long-term, it will be a positive for DXdao to be close with a smart, capable team working on a product to solve this need.

Next Steps

  • Discuss here in the forum.
  • Schedule a special call for Henry to speak with the DXdao community
  • Move towards an on-chain proposal.
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