Mean Finance is a DCA protocol. It enables users to Dollar Cost Average (DCA) any ERC20 into any ERC20 with their preferred period frequency by leveraging both Chainlink and Uniswap V3 TWAP oracles. DCA is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase.
The purchases occur regardless of the asset’s price and at regular intervals. To explain this please follow the below example:
All you have to do is input the number of $BAL you want to sell and select the token that you want to swap it for along with the duration of DCA.
Strategy to deploy the DCA technique
- Go to Balancer on Polygon and find the wMATIC-stMATIC LP.
- Supply wMATIC into the pool.
- You will be able to collect BAL rewards weekly. With veBAL recently out and the approaching BAL wars, there is a good chance that somebody would pay bribes to increase the rewards of this pool.
- The BAL rewards would be accessible once a week after which you can sell it via Mean Finance. Since nobody can time the market you can programmatically sell $BAL for more $wMATIC so you can sell for the best possible price.
- Supply wMATIC back into the BPT periodically to maximize returns.
Mean Finance and Balancer are audited. However, farming strategies entail protocol risks, market risks, smart contract risks, and more. Treat this strategy as experimental, and never deposit more money than you can afford to lose.