H20 Docs
  • H20
  • On-chain Token Economy Management
  • Non-Negotiables
  • Getting Started
  • Token Lifecycles & H20 Services
    • Token Lifecycles & H20 Services
      • Pre-Launch Phase
      • Post-Launch Phase
        • Treasury Establishment & Management
        • On-chain OTC
        • Peg Management
        • Buybacks
        • Liquidations
        • Trading
      • Vesting Phase
        • Managing Token Unlocks
      • Consolidating and Maturing Phase
        • Sustainable Self-Custody Market-Making
  • STRATEGIES
    • Auction-based DCA
    • Fixed Grid
    • Recharging Grid
    • Dynamic Spread (Single sided)
    • Dynamic Spread (Double sided)
    • Dynamic Spread (Fast or Slow Exits)
  • Case Studies
    • Profitable Market-making With Correlated Token Pairs
    • Profitable Market-making with Uncorrelated Token Pairs
    • Managing Inflation From Token Vesting
    • Turn Low Volume into High Growth with H20
    • Bootstrap Your Token with H20
    • Bring CEX-Style Trading On-Chain with H20
    • Stabilize Your Token Peg with H20
    • Capture Value from Price Run-Ups with H20
    • Transform Downtrends into Sustainable Liquidity Growth with H20
  • Security & Risk Management
    • Security Model
    • Risk Management
  • Reporting
    • Reporting
      • Example Reports
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  • How It Works
  • Key Benefits
  • Ideal Use Cases
  • Technical Parameters
  1. STRATEGIES

Auction-based DCA

Auction-based DCA is an automated trading strategy that streams budgets through continuous price auctions to optimize token execution, combining dollar-cost averaging with dynamic pricing.

How It Works

  1. The system continuously runs price auctions to find optimal execution prices

  2. Trade sizes increase when prices improve

  3. Configurable price limits protect positions from unfavorable market conditions

  4. Budget streaming occurs intelligently to minimize market impact

Key Benefits

  • Better Average Prices: Achieves better average entry prices than standard DCA or limit orders

  • Controlled Market Impact: Intelligent budget streaming prevents price slippage

  • Simple Setup: Users set clear parameters once and let the strategy work

  • Manipulation Resistant: No reliance on potentially manipulatable third-party price data

Ideal Use Cases

  • Tokens without reliable price oracles (new/niche tokens, newer networks/L2s)

  • Situations requiring manipulation resistance

  • Long-term token accumulation strategies

  • Any arbitrary token pair, including uncommon trading pairs

Technical Parameters

  • Budget amount and frequency

  • Price limits (min/max)

  • Auction duration

  • Order size parameters

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Last updated 24 days ago