Leverage DCA

Overview

Amplify your gains with leveraged trading with gradual buy/sells. This strategy enables users to automatically benefit from the differences between the cost of borrowing and the expected profit generated from the borrowed liquidity.

Potential Alpha

• Multiply Your Gains: Get access to more liquidity thereby increasing your capital efficiency through leverage.

• Gradually Buy At Lower Prices: Purchase tokens along a smooth price curve starting from your start price to your specified end price. Every trade covers a larger proportion of your debt.

• Gradually Sell At Higher Prices: Sell tokens along a smooth price curve starting from your start price to your specified end price. Every trade covers a larger proportion of your debt.

• Earn From Market Spreads: Earn additional trading fees from short term volatility within your selected range.

Strategy Building Blocks

The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.

Lend

• Longs (upside speculation)

  • Lend the token you are bullish on to the specified lending pool.

• Shorts (downside speculation)

  • Lend stable tokens to the specified lending pool.

Borrow

• Longs (upside speculation)

  • Borrow stables against your collateral.

• Shorts (downside speculation)

  • Borrow the tokens you are bearish on.

Swap

• Longs (upside speculation)

  • Swap the acquired stables for more bullish tokens.

• Shorts (downside speculation)

  • Swap the acquired debt tokens for more stables.

Create LP

• Create a single-sided concentrated liquidity position for the token pair.

  • Longs: Add all the bullish token to a range above the current market price.

  • Shorts: Add all the stables to a range below the current market price.

Example