Proposed DCA schedule for Treasury Q2+ diversification strategy
In Referendum #43 the HydraDX community approved the diversification of a combined 4.8M DAI into HDX, DOT and iBTC using the DCA pallet once deployed.
As we approach the launch of this key feature, it is important that we discuss the schedule for execution. This will not be a formal “vote”, as each individual DCA schedule will require its own referenda to be executed through the Treasury - instead this discussion will gauge alignment and identify any conflicts or concerns.
Buy 1,000,000 DAI worth of HDX
- Execute a DAI > HDX trade every 5 blocks (~60 seconds)
- Aim to execute the entirety of the order over 1 quarter (13 weeks)
- This would result in ~131,000 sells of 7.63 DAI in exchange for HDX
- In order to gauge performance and adjust if needed, I propose an initial schedule of 50,000 DAI, followed by 3x 250,000 DAI, and finally 200,000 DAI until the budget is depleted
Buy 3,330,000 DAI worth of DOT
- Execute a DAI > DOT trade every 2 blocks (~24 seconds)
- Aim to execute the entirety of the order over 1 quarter (13 weeks)
- This would result in ~328,000 sells of 10.16 DAI in exchange for DOT
- In order to gauge performance and adjust if needed, I propose an initial schedule of 50,000 DAI, followed by 6x 500,000 DAI, and finally 280,000 DAI until the budget is depleted
Buy 500,000 DAI worth of iBTC
- Execute a DAI > iBTC trade every 5 blocks
- Aim to execute the entirety of the order over 6 weeks
- This would result in ~60,000 sells of 8.27 DAI in exchange for iBTC
- In order to gauge performance and adjust if needed, I propose an initial schedule of 50,000 DAI, followed by 3x 150,000 DAI until the budget is depleted
Please leave your comments in this discussion, as well as indicating your preference on the poll.