DCA Strategies

Strategies that help the user easily invest into crypto assets

Dollar Cost Averaging Strategies

Dollar-cost averaging, or “DCA”, is an investment technique in which an investor purchases a fixed dollar amount of a particular asset on a regular schedule, regardless of the asset's price. The investor then holds the asset until its price appreciates to a desired level.

The majority of DCA products on the market are mostly centralized, thus a user needs to trust a central authority. The recent Celsius, BlockFi, and FTX meltdowns showed that this is a major risk.

Brokkr enables a non-custodial and fully automated DCA product, that lets users set up recurring investments in several coins in fixed intervals.

  • This allows investors to take advantage of dollar cost averaging without having to worry about manually managing a portfolio or the need to trust a central player.

BTC.b DCA

Protocols & Assets Used: • BTC.b BTC.b is Bitcoin wrapped via the official Avalanche bridge • TraderJoe - USDC-AVAX Pool & BTC.b-AVAX Pool & PTP-AVAX Pool

Description: A user invests USDC into the strategy. Every week, the strategy exchanges a 52th of the deposited USDC for BTC.b. One year after the initial deposit, all USDC are used to buy BTC.b. At any point, a user can withdraw all her capital. The BTC.b are exchanged back to USDC at current price, and the user gets the full amount back in USDC.

Risks:

  • BTC.b will vary in price (also to the downside)

  • BTC.b depeg

  • Standard smart contract risks

Emergency Exit Thresholds

  • BTC.B depegs by more than 15%

  • TraderJoe USDC-BTC.B pool drops below 3 times the size of the TVL in the strategy

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