Cetus DCA: Unlock Smarter Investing with Your Automated Investment Partner

4 min readSep 12, 2024

Exciting news for the Cetus Community! We are thrilled to unveil the beta launch of our newest product: Cetus DCA. This groundbreaking tool is designed to transform your investment approach by leveraging the power of Dollar-Cost Averaging (DCA) with unmatched precision. It’s time to say goodbye to the stress of market timing and embrace a smarter, more efficient way to invest! 💰

What is Dollar-Cost Averaging (DCA)?

Forecasting short-term price peaks or bottoms is one of the most challenging things when we do asset investment. Whether you’re a seasoned investor or a newcomer, predicting market movements with high accuracy is nearly impossible.

Instead of committing a large sum of money in one go, which might lead to purchasing at a market peak, Dollar-Cost Averaging (DCA) allows you to spread out your investment over a period. This strategy helps to smooth out your overall cost basis, reducing potential losses and enhancing profitability over the long run.

DCA involves dividing your total capital into smaller, regular purchases made at predetermined time intervals. This gradual approach lowers the risk of investing a lump sum at an inopportune moment and can be particularly beneficial for those who believe in the long-term value of their chosen assets.

How Does Cetus DCA Work?

Cetus DCA simplifies the process of Dollar-Cost Averaging by automating your investment strategy. Instead of manually executing multiple transactions, Cetus DCA handles this for you, making it easier to stick to your investment plan.

Here’s how it works:

Divide Your Capital: Rather than investing a lump sum all at once, you can indicate how many orders you want to divide it into. Cetus DCA will split your total budget into smaller, regular purchases according to your settings.
Set Your Time Interval: Choose the frequency of your purchases, which can be hourly, daily, weekly, monthly, or as frequent as every minute.
Indicate Your Price Range: Given that the price of some tokens could be highly volatile and some users would not want their orders to be executed if the price drops or increases to a certain level, you can specify the price range they accept for their orders.
Automate Your Strategy: Cetus DCA automates these transactions based on your preferences, executing them with predetermined rules without the need for users’ constant monitoring.

When to Use DCA?

Accumulation During Bear Markets

Bear markets can be daunting, especially when it’s difficult to pinpoint the exact bottom. During such periods, spreading out your investments through DCA helps you average out your entry price, reducing the impact of short-term volatility.

For example, during the 2022 BTC bear market, where prices dropped over 60%, employing a DCA strategy would have resulted in significant gains when the market eventually rebounded. By implementing daily or weekly DCA purchases, investors were able to buy BTC at an average price significantly lower than the peak. As the market recovered, these investors saw substantial returns on their investments.

Profit Taking in Bull Markets

Dollar-Cost Averaging is not only for bear markets but also an effective strategy during bull markets. Instead of selling your entire position all at once and risking missing out on further gains, DCA allows you to sell gradually over time. This approach helps you capture profits systematically, even if the market continues to rise.

For example, if you had been accumulating BTC during the bear market and entered a bull phase, using DCA to sell portions of your holdings can maximize your profit while mitigating the risk of market swings.

Split Up Large-Sized Orders

Large market orders can significantly impact prices, especially in markets with low liquidity. By spreading your orders over time, DCA reduces the market impact of each transaction, helping you secure a better average price. Cetus DCA currently offers intervals as short as 1 minute, facilitating a TWAP (Time-Weighted Average Price) execution strategy that minimizes market disruption.

Sell Tokens with Low Liquidity

Tokens with low liquidity are more likely to pose challenges when selling, sometimes leading to downward price pressure and larger slippage. DCA alleviates this issue by distributing your selling activity over time, thus reducing the overall selling pressure and potentially enhancing your returns.

Why Choose Cetus DCA?

Cetus DCA is designed to simplify the investment process, allowing you to accumulate assets efficiently while managing risk. Whether you’re navigating a bear market or taking profits in a bull market, Cetus DCA provides a structured and automated approach to investment that aligns with your long-term goals.

Automated Investment: Streamline your DCA strategy with minimal effort.
Risk Management: Reduce the impact of market timing and volatility.
Flexible Intervals: Choose purchase intervals that suit your investment style.
Enhanced Returns: Mitigate market impact and optimize your buying or selling strategy.

More importantly, powered by the existing Cetus liquidity and swap infra, your orders with Cetus DCA can be executed more smoothly and stably in the long term.

Now, the Cetus DCA has launched its beta. There will be more optimizations and upgrades to be implemented continually based on the current version for better user experience. Get started with Cetus DCA now and leverage this powerful tool to make smarter, more strategic moves in the market! 🚀💡