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Token-Cost-Averaging

Token-Cost-Averaging* (TCA) is one possible application designed to leverage the power of Superfluid streams. This application could allow the user to swap tokens in continuous real-time streams: stream in your Sell token and receive back the Buy token periodically.

What is Token-Cost-Averaging (TCA)?​

Token-Cost-Averaging (TCA) is an investment strategy where an investor divides up the total amount to be invested across periodic purchases of a target asset (just like Dollar-Cost-Averaging but it's asset agnostic). This strategy gives users the best results over time by swapping tokens in continuous real-time streams: stream in your Sell token and receive back the Buy token periodically.

How does it work?​

This application could be a new trading app powered by Superfluid. It could be designed to provide a more efficient and accessible way to perform Token-Cost-Averaging (TCA) by leveraging the power of Superfluid's streaming technology. Under the hood, the app would perform swaps time-continuously using a Time-Weighted Average Price (TWAP) oracle for liquidity source aggregation and a fair price over time.

The Superfluid Advantage​

Compared to existing TCA or DCA (Dollar-Cost-Averaging) dApps built on other protocols, Superfluid offers several advantages:

  • Efficiency and Accessibility: Building on Money Streams makes TCA more efficient and accessible. By using Superfluid's streaming technology, it allows for continuous and automated investment flows, reducing the need for manual intervention and making investment more seamless and user-friendly.
  • Reduced Volatility Impact: The core idea of TCA is to mitigate the risks associated with volatile market conditions. Superfluid enhances this approach by allowing for more frequent and smaller investments, thereby further reducing the potential impact of sudden market changes.
  • Innovation in DeFi: By leveraging Superfluid's groundbreaking streaming technology, this TCA app stands at the forefront of innovation in decentralized finance, offering a unique approach to cryptocurrency investments.