What is Pools DCA
In order to understand Pools DCA, first we must discuss DCA. Most likely the readers know this already, DCA is Dollar Cost Averaging. Dollar-Cost Averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of market conditions. In the context of crypto markets, this means buying a set dollar amount of a cryptocurrency (e.g., $100 of SPS) weekly, monthly, or at another consistent interval, rather than investing a lump sum all at once.
Here are some of the benefits of DCA in general:
- Reduces Timing Risk: Crypto markets are volatile, and predicting price lows is challenging. DCA spreads investments over time, minimizing the risk of buying at a market peak.
- Mitigates Volatility: By purchasing at various price points, DCA averages out the cost per unit, reducing the impact of sudden price drops.
- Encourages Discipline: Regular investments prevent emotional decisions driven by market hype (FOMO) or panic, fostering a consistent approach.
- Affordable Entry: DCA allows investors with limited funds to gradually build positions in high-priced cryptocurrencies like Bitcoin without a large upfront investment.
- Long-Term Focus: Aligns with a strategy for investors bullish on crypto’s future, helping them avoid short-term market fluctuations.
DCA works in all markets and most market conditions. There are tools (bots) to trade for you if you like to acquire a large amount on tokens without moving the market too much. One such tool is https://dswap.trade/. There is a Market DCA option available which can help you buy large amount of any tokens that is traded in the hive-engine market by using numerous small orders.
DCA into the Pools
In our case, many of us use Hive-Engine or Tribaldex Diesel Pools to buy-sell crypto. This is because, it is often easier to trade large order there most easily. Especially if you trade Swap.Hive, DEC or SPS. Although the pools does have a small fee, and markets don't, they just have bid-ask slippage.
Above are the top six pools at Tribaldex arranged with the highest liquidity at the top and then in decreasing order of liquidity. Trouble is, by the time you get down to number six position, the Swap.Hive : Swap.ETH pool, we are down to $100K worth of liquidity. Now you might think that could be enough, but it is not.
Even to convert only 0.5 ETH ($925 at current prices) requires 1.35% potential price impact and 8.8 swap.hive in fees. I have done a lot of conversion in various pools like Uniswap, Pancakeswap and obviously tribaldex, and I am typically uncomfortable if the price impact is above 0.5%.
Also the reason, this particular pool is important to me is because that is the least expensive way I can buy ETH externally and put into tribaldex to exchange for swap.hive and eventually DEC or SPS.
Currently from Texas, this is the cheapest legal way to buy crypto and get into Splinterlands:
-> USD to USDC at coinbase (free)
-> Transfer USDC to Metamask (eth) (fee in cents for $10K)
-> Uniswap: convert USDC to ETH using Metamask (fee in cents for $10K)
-> Deposit ETH to Tribaldex (becomes swap.eth) for free -> Swap.ETH to Swap.Hive
-> Swap.Hive to DEC/SPS, both markets very liquid
New DCA Tool for Pool :)
It rhymes! This tool is currently alpha, so use at your own risk.
https://qa.dswap.trade/
What this tool does, is breaks that 0.5 ETH order into 10 orders (or how ever many), and makes 10 small trades instead of one big one.
The results is surprisingly satisfying. I will have some data to prove and back it up.
I did this test yesterday. I used the Pools DCA tool to auto-create 10 small orders. Also I executed a single 0.5 ETH order. The sum of 10 small order got me 3455.67 swap.hive for 0.5 ETH, while the single order got me 3418.24 swap.hive. ETH or Hive didn't move in that 4 min time frame.
Now you might say 37 hive ain't much, but that is 1% of the trade. If you do a lot of trades like I have been doing lately, it adds up!
Another Test
I did another one today, and it worked out fine. The tool also have an interface to see the trades.
My only request to @aggroed is to please have a dark-mode background, just Tribaldex.
Final word, this tool is still in alpha QA testing phase, so please use small amount and be careful.
