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What is DCA ? 🤔
DCA stand for Dollar Cost Averaging, which refer for a strategy to accumulate an assets through many buying at different time. Usually they set an interval for it and doing a buy without considering the price at the moment. This is the counter strategy of bulking buy when someone think they know the best price. With the DCA strategy, people can have that assets on the average price of certain duration, which often lower than the current price when it's pumped.
What is Pool Swaps ? 🤔
Pool swaps is refer to the activity of doing swapping an assets into another with the help of liquidity pool. With market system, there is usually a higher gap between the asking price and the bid price. Meanwhile, swapping through the liquidity pool could give you relatively better price with higher liquidity than the bid/offer, and based on my experience, the price are also better than fast buy/sell because the swaps use the price between the bid and asking price.
Now We Can Do Pool Swaps DCA Easily With DSwap 😎
Great news comes from DSwaps because now we can do an automatic pools DCA beside the automatic market DCA ! With this, we can split the buy or sell activity, so we can having a better price especially for a big ammount, because a bulk buy and sell often change the price a lot because it exceed the liquidity for the current price. What make it even better is that DSwap will do it for us, and we only need to do a simple setting !
Tutorial for Pool Swaps DCA and My Experience as Example
First, go into the DSwap site on https://dswap.trade/ , then you will find the main page as shown at the image above. There is some menu at the left of the screen : Home, Swap. Market DCA, Pools DCA, Wallet, Trades, Market Maker, Pricing, and FAQ. For today, we will try the Pools DCA.
First, we need to set what token we want to sell/ offer, with the ammount of how much you are willing to sell it. For my 1st try, I will put 10 of my swap.hive as offer. Then, we need to pick which token we want to get. I try DEC because I need it for paying the rent for the SPL cards.
Now we need to set the interval of the DCA and how many swap we want it. For the example, I tried for the swap every 60 minutes (1 hour) for 12 orders, so it will swap my SWAP.HIVE into DEC every hour for 12 hours.
There will be Summary for the transaction for us to review it before start the DCA. The fee is only 0.25% of SWAP.HIVE sold, quite little fees.
Last, to make sure there is no mistakes, we are given a confirmation of the transaction we are going to made. Make sure you take a look at it before click the proceed button.
And on the bottom of the page, you can see the history and the active DCA from your account.
My Automatic Pool DCA Result
I try to do the explore from hive engine to see the result as I shared it on screenshot above. We can see together the program succesfully make a transaction each hours until 12 transaction.
The DEC I got is getting up just before it dropped again. This shows how the volatility the DEC and SWAP.HIVE price. I get more DEC at start then reduce.
If I do bulk buy at the time I am going to DCA pool, then I can get more DEC, but if I doing the bulk buy at the end of my DCA pool period is end, then I will receive less DEC. We never know the future, and DCA help us to be at better position with average price over some period of time.
Final Words
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