[RFP]: Asset Cost Averaging (ACA) in PolkaSwap

miansegat commented 1 month ago

Proposal Due Date

July 2024

Proposal Overview

In all stock markets, the absence of a prediction of the future has proven to be a pipe dream (even for professional investors who spend all their time studying the market) and the Dollar Cost Averaging (also known as DCA) strategy is increasingly used. further. It refers to constantly investing a small, fixed amount of money, which over time can produce better results, while saving you time and nerves. It is especially used in high-volatility cryptoassets, such as $XOR, and this is a recurring topic of conversation among the SORA community.

IMO, this tool is a perfect complement to the 'Swap' & 'Trade' options in PolkaSwap with the additional possibility of starting to ignore the US Dollar as a reference value and start using others at the user's discretion, whether FIAT-pegged or not, hence the name change from 'DCA' to 'ACA'.

Development would consist of a section for generating ACA In / ACA Out strategies tailored by users considering the following essential elements:

Choose Assets to buy/sell
Define Strategy according to the following parameters: Total amount to invest/withdraw - Increment (optional) - Start date (optional) - Time period - Amount per purchase/sale

Proposal Goals

The objective of the Asset Cost Average (ACA) is to divide the total investment into smaller portions divided into time periods, where the purchase of cryptocurrencies or currencies can offer you better results than if you invested all of that in a single purchase. The idea is based on an element that we see in the markets all the time: price volatility.

Some of their sales are:

harmonizes the purchase cost of assets in the long term.
helps reduce the risk associated with investment volatility.
It is a good way to save or HODL.

As disadvantages we can find:

higher costs in terms of transactions, since you must buy regularly, with costs that may vary over time.
a lower risk is associated with a lower potential return.
it requires strong financial discipline and constant monitoring of the markets if we want to be successful with it.

Using an Asset Cost Averaging (ACA) tool reduces this last disadvantage associated with user discipline because it allows you to set it at a certain time and let the system run.

The possibility of creating multiple simultaneous strategies also allows for greater and better adaptation to the market situation at all times.

Scope of Work

I'm not able to make an assessment of this section.

Current Roadblocks and Barriers to Success

I'm not able to make an assessment of this section.

Evaluation Metrics and Criteria

The development of Asset Cost Averaging (ACA) in PolkaSwap can be considered implemented when the user can prepare his strategy according to the defined parameters, provide the assets and the operations are executed in the established time and manner.

Submission Requirements

Same as Evaluation Metrics and Criteria

Submission Method

Blockchain: Mainnet

Project Due Date

August 2024

Budget Amount

I'm not able to make an assessment of this section.

miansegat commented 1 month ago

P.S. This proposal #109 can be considered a shortened initial version of the [RFP]: Polkaswap Reoccurring Buys ADCA ( Auto Dollar cost Averaging) Touching grass #102

MishoKanaria commented 1 month ago

I like the idea of asset cost averaging as this is inline with Polkaswaps core values, allowing to trade with style and freedom.

porkchop315 commented 1 month ago

P.S. This proposal #109 can be considered a shortened initial version of the [RFP]: Polkaswap Reoccurring Buys ADCA ( Auto Dollar cost Averaging) Touching grass #102

nice submission I'm glad someone is taking what i presented and optimizing it

sora-xor / rfps