8PAY enabling Dollar Cost Averaging investment strategy on PancakeSwap
What Is Dollar-Cost Averaging (DCA)?
Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset’s price and at regular intervals.
This strategy removes much of the detailed work of attempting to time the market in order to make purchases of equities at the best prices.
We’re proud to announce our third Advanced Feature Dollar-Cost Averaging (DCA)
You can set up as many Investment Strategies as you need and name each one of them differently.
To set one up, tap “Invest” on the main navigation slider. To view and check an already created investment strategy, tap on the strategy you want to see, and you’ll be able to cancel and review every single swap made.
To further understand the potential of Dollar-Cost Averaging, here’s how it works:
- From the left slider click on Invest
A new section of the UI will appear, if this is the first time you are using one of 8PAY’s advanced features (like Scheduled Payments), you will see this banner warning you to activate your GasWallet.
If you don’t know how to enable your GasWallet and why it’s needed please read this article:
Once the GasWallet is activated, we are ready to proceed with the creation of the first Investment Strategy
2. Click on Create Investment a right slider will appear:
A right slider will appear:
Name: This is a reference name you can give to your strategy, the name will be displayed in the list of your running strategies.
Input Amount: The number of tokens (Budget) you want to allocate to your strategy
Input Token: The type of Token you want to use for your strategy
Start: The start date when you want your startegy to begin
Frequency: The frequency with which the swap must take place could be:
Daily , Weekly , BiWeekly , Monthly , BiMonthly , Quarterly
Tokens: The destination token(s) you want to receive after the swap (selectable from the list of tokens supported by 8PAY)
Let’s create our investment strategy:
Name: My Second DCA
Input Amount: 100
Input Token: 8PAY
Start: December 16th , 2021
Tokens: WBNB , BUSD , USDT , ETH
When you are satisfied with your strategy , click on Create Investment and confirm the transaction on your Metamask
By creating a strategy such as the one on the screenshot above, we are asking 8PAY to trade the amount of 100 8PAY each day, partitioned according to the percentages set
25% of 100 8PAY will swapped for each chosen token at Market Price Rate
25 8PAY token will be swapped in WBNB
25 8PAY token will be swapped in BUSD
25 8PAY token will be swapped in USDT
25 8PAY token will be swapped in ETH
If you want to see the results of your Strategy click on it from the list displayed
After executing the swap you will receive a notification like this one click on that to see the swap’s details
Each automatic transaction will be automatically executed by 8PAY smart contracts and the blockchain transaction cost will be automatically taken from the gas wallet.
In conclusion, automatic DCA on Decentralised Exchanges will open a world of possibilities for traders who’d like to automatise investments strategy keeping custody of their funds.