Introduction

One of the features that makes us believe in future of crypto market is the ability to render different products in a decentral manner. In fact, this probably is the sole value-driving nature and feature of cryptos. Everyday we can see more integration and interoperability between crypto projects and real life since they have a clear vision and method of rendering their products.

Mean Finance is one of those projects with a product called DCA for crypto assets. before we jump into investigating some aspects of Mean Finance data and statistics, it's helping to know what exactly is DCA.

What is DCA?

DCA stands for Dollar-Cost Averaging. So, what is that?

If you are familiar with trading you sure know that it's a very hard job to keep track of each asset, draw charts and lines to identify low or highs, dig deep into different indexes, etc, just to find out what is the best time to buy or sell an asset; and considering the risk management strategies you need to do all of this for second and third step of your buying too. That's hell of a hard work.

DCA is designed to address this problem. To DCA you need to buy an asset consistently in equal intervals to pass on the short term volatility and get ready for a huge pump. By buying in repeated intervals like everyday, you make sure you are not going to lose the deeps, and your volume won't be much to effect your overall average cost.

What does Mean Finance do?

In Mean Finance you can DCA buy you assets on regular basis without having to pay transaction fee for every time, and also without actually buying it yourself every time. The good news is you don't need to trust your funds in a centralized entity; You are trusting a smart contract which provides for you a decentralized layer for financial efforts. Another good news is Mean finance is on Optimism and Polygon, so no longer wasted Money on gas fees!

Methodology

There are 4 actions that you are able to perform in Mean finance: Depositing (selling), withdraw swapped, increase position and terminate position.

In this dashboard we are going to investigate into Increasing and Terminating. Increasing refers to the operation where user top up their initial deposit to keep their DCA order for more time or different set up. Terminating is the operation where user stops the DCA order and take out remainder of initial deposit plus what were swapped so far. Without further a due lets get to work...

Data & Analysis

I will start the analysis with basic and necessary information about how many increase and terminate action were done in past month.

• As you can see Terminate actions were significantly higher in past month. one reason may be that most people were in need of liquidity and tbh nobody thought that market can go down like this!
• It doesn't seem that this numbers reflect instantly what is happening in the price of assets.

Now Lets see how much each user increased or received after terminating

• Only one Address used this market deep to keep DCAing by adding to initial supply. looks like we have a well managed investor!

• On the other hand we can see more heavy numbers among those who terminated and withdrawn all their remaining assets.

Now lets see how much of each asset was engaged and used in these operations:

• Stable coins and USDC on top of them are the most popular assets to increase the position. But as the second chart shows, this amount came in very recently.

• Things are almost the same for terminating positions as stablecoins are more popular, but this time miMatic is almost 2x more popular than USDC
• The point is since the liquidity is still low, one transaction can change the course of the game; Like miMatic which sat an first row with just one spike.

Conclusion

The most useful case of DCA seems to be using Stable coins to buy assets, or selling an asset to stable coins. there are few cases were for example ETH is selling for CRV since the volatility is not matched with the very act of DCA.