Creating a position in DCA means swapping a fixed amount an ERC-20 token for another ERC-20 at a regular interval. In order to do so, users needs to input certain properties:
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Chain: Arbitrum, Ethereum, Polygon or BSC
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Wallet: Metamask, Rainbow, WalletConnect, etc
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From: ERC20 token to sell
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To: ERC20 token to buy
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Total Investment: Total amount of "From Token" you wish to put in the vault.
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Duration: how many swaps to execute
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Frequency: daily, weekly, hourly, etc
Whereas when it comes to executing a DCA position, the process takes place in the backend of the exchange's smart contract.
Here's how it typically works:
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The user specifies the inputs written above.
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Instead of executing each individual swap separately, which would be expensive in terms of gas fees, DZap aggregates all positions in the same pair and executes them together.
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To execute these swaps, DZap relies on swappers. These swappers executes the swaps. To encourage swappers execute the swaps.
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To get the best price for each swap bundle, DZap uses price oracles and aggregates liquidity from various DEX aggregators through our Meta aggregator.
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When a swap is executed, DZap rewards swapper optimistically. This incentivizes swappers to execute the swaps.
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Also, DZap shares a portion of the swap's protocol fees with the swapper.