https://dswap.trade now offers pool swaps over time

in #hive-engine2 days ago

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When you make large swaps against diesel pools you may see a high price impact. This means that your order is so big that it's disturbing the price equilibrium and you're not able to capture the best ratio of tokens.

Up until now there wasn't too much you could do about it. You could split the transaction up into 10 smaller transactions over time, but that takes a long time and is annoying to do. You could shrink the trade, but where's the fun in that. You could skip the trade and hope for a better deal later, but crypto gods hate you and the better price is only available on the trades you already took.

So, what's the plan? https://dswap.trade. dswap already offered DCA market orders where you could place smaller bid/ask market orders on the bid/ask market over time, but now we're offering DCA pool orders too.

DCA means "Dollar Cost Average" and essentially means making more smaller trades over time rather than 1 big trade all at once. By using the pools instead of market orders you are more likely to get a good deal with the trade because there's more liquidity at the current price in pools than with bid/ask markets (there are short term exceptions, but this is generally true).

So, you can do either, but the POOLS DCA is a new tool.

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Once you select POOLS DCA you can setup your trade how you want.

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In the example above instead of doing 1 transaction for 100,000 DEC all at once, I'm breaking it into 6 orders which happen every 5 minutes (for a total of 30 minutes).

By doing this, I'm assuming that the price is not going to change too dramatically, but that the various bots and other traders on the platform will give me better price ratios by doing it in smaller chunks over time rather than doing one larger one all at once.

Will this always result in more tokens received? No, it's not a guarentee. So, use this thing wisely and understand there are risks. That said, if the price isn't moving quickly up or down during the trade you should have a good shot at getting the highest return by breaking it into smaller trades.

Running Experiments

Before executing some sample trades consider having two windows open. Tribaldex.com/swaps with the same trade setup as a single swap, and also dswap.trade with the trade setup over time. Screen shot both before you begin, and then check back after the trade is over to see which approach would have gotten you more tokens.

I've done this 5 or 6 times with multi-thousand dollar trades and it's always worked out for the POOL DCA. That said, run your own experiments and see what works for you.

Like all trading, start small until you understand how the thing works and what it's doing.

Give it a shot!

If you're gearing up to buy a bunch of a token consider gathering them more slowly by using https://dswap.trade, selecting pool swaps, and trying a DCA approach.

Happy trading out there and good luck.

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Bookmarked thank you!

I did write this on Discord aswell, but it would be awesome to setup a real DCA with recurrent payments and not having to "pay" a lumpsum of Hive upfront, would be better for smaller users.

Dswap ofc, needs to get check for payment before making the order :)


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Can bot frontrun my DCA pooling?

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