Doesn't Kollider's synthetic USD make this easier?
Lets say I want to do 10 weekly buys at $10 each.
Couldn't I buy today $100 USD on Kollider. Then the bot simply closes $10 worth each week. The proceeds are in bitcoin. So after 10 weeks I will have about the same amount of bitcoin as if I had done 10 buys using fiat?
If Kollider then were to sweep daily the BTC balance to my Lightning address, that would even lessen the counterparty risk of leaving my bitcoin with an exchange.
Yes that requires me to commit the full $100 today (versus normal DCA where the funds for next week's purchase aren't needed until next week), but if I have the (fiat) capital, this seems to me to be simpler.
I do understand there is risk exposure holding Kollider's synthetic USD. I could see this same approach being done with DLCs perhaps instead though, or options contracts, etc. So using the example above, I buy $100 long, and I spend another $100 opening 10 contracts of $10 each. Each week I then close the short, and sell from my BTC balance exatly $10. At the end of ten weeks I will have a USD balance of $100 and a BTC balance that is about the same as if I had purchased $10 worth of bitcoin each week. (Albeit there will be some small fees that will be realized but that probably wouldn't be a material difference than had you bought each week with fiat).
Does that make sense as a way to DCA without having to provide verification / KYC? Sure, there is a significant amount of capital required upfront (twice the amount you plan to DCA over the period covered), but it could be "fire and forget" until the end of the 10 weeks, or whatever duration.
They made it happen!!!
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