DCA (Dollar-Cost Averaging)

Automated recurring BTC purchases with Mayer Multiple smart strategy

DCA (Dollar-Cost Averaging)

Automated recurring BTC purchases with an intelligent Mayer Multiple strategy that adjusts buy amounts based on whether BTC is historically undervalued or overvalued.

Overview

Sable’s DCA contract enables on-chain recurring BTC purchases with two modes:

1. Standard DCA: Fixed amount per order (traditional DCA)
2. Smart DCA: Mayer Multiple adjusted amounts (buy more when cheap, less when expensive)

How It Works

1. Create Order

   User selects parameters:

   • Sell token: USDC, USDT, ETH, or STRK
   • Amount per order: e.g., 10 USDC
   • Frequency: Daily, Weekly, Bi-weekly, or Monthly
   • Number of orders: 1-365
   • Strategy: Standard or Smart (Mayer Multiple)

   const order = {
     sellToken: "USDC",
     amountPerOrder: "10",
     frequency: "weekly",
     totalOrders: 12,
     smart: true  // Enable Mayer Multiple
   }
   
2. Deposit Funds

   For Standard DCA:

   Deposit = amountPerOrder × totalOrders
   Example: 10 USDC × 12 orders = 120 USDC
   

   For Smart DCA:

   Deposit = amountPerOrder × totalOrders × 1.5
   Example: 10 USDC × 12 orders × 1.5 = 180 USDC
   

   Smart DCA requires 1.5x deposit to cover worst-case (all orders at max 1.5x multiplier). Unused funds are refunded on completion.

3. Keeper Execution

   Off-chain keeper bot monitors orders and triggers execution when due:

   1. Checks if block.timestamp >= nextExecution
   2. For Smart DCA, queries Pragma Oracle for Mayer Multiple
   3. Calculates adjusted buy amount
   4. Fetches AVNU swap quote
   5. Executes on-chain swap
   6. WBTC sent directly to user’s wallet
4. Completion or Cancel

   • Completion: After all orders execute, unused funds (Smart DCA) are refunded
   • Cancel Anytime: User can cancel active order and receive all unspent funds immediately

Smart DCA — Mayer Multiple Strategy

What is the Mayer Multiple?

The Mayer Multiple is the ratio of BTC’s current price to its 200-day moving average:

Mayer Multiple = Current BTC Price / 200-day Moving Average

When the multiple is low, BTC is historically cheap — buy more. When high, it’s overheated — buy less.

Multiplier Table

Mayer Multiple	Market Signal	Buy Multiplier	Example (10 USDC base)
< 0.8	Deeply undervalued	1.5x	15 USDC
0.8 – 1.0	Undervalued	1.25x	12.50 USDC
1.0 – 1.5	Fair value	1.0x	10 USDC
1.5 – 2.0	Overvalued	0.75x	7.50 USDC
> 2.0	Extremely overvalued	0.5x	5 USDC

Backtested Performance

Historical backtests show Smart DCA outperforms standard DCA by 50-60% over 4-year cycles by:

• Accumulating more BTC during bear markets (MM < 0.8)
• Reducing exposure during bubble periods (MM > 2.0)

1.5x Deposit Buffer Explained

Smart DCA deposits amount × orders × 1.5 upfront to cover worst-case scenario:

Example: 10 USDC × 4 orders × 1.5 = 60 USDC deposited

Execution:
  Order 1: MM=0.76 → 15 USDC spent (1.5x)   | Running: 15/60
  Order 2: MM=1.12 → 10 USDC spent (1.0x)    | Running: 25/60
  Order 3: MM=0.95 → 12.50 USDC spent (1.25x)| Running: 37.50/60
  Order 4: MM=1.80 → 7.50 USDC spent (0.75x) | Running: 45/60
  ──────────────────────────────────────────────────
  Total spent: 45 USDC    Refunded: 15 USDC

If the market stays fair value (MM ≈ 1.0), you’ll receive ~33% of your deposit back as a refund.

DCA Contract Flow

┌──────────┐     approve + create_order      ┌─────────────┐
│   User   │ ──────────────────────────► │ DCA Contract │
│          │                                  │              │
│          │     cancel_order (refunds)       │  Orders[]    │
│          │ ◄────────────────────────── │  Executions[]│
└──────────┘                                  └──────┬───────┘
                                                      │
                   execute_order(routes)               │
┌──────────┐ ──────────────────────────────────────┘
│  Keeper  │          │
│   Bot    │          ▼
│          │    ┌─────────────┐    ┌──────────────┐
│(off-chain│    │ Pragma      │    │ AVNU Router  │
│ cron job)│    │ Oracle      │    │ (DEX swap)   │
└──────────┘    │ (BTC/TWAP)  │    │              │
                └─────────────┘    └──────────────┘

Order Creation

Standard DCA

let order = DcaOrder {
    user: caller_address,
    sell_token: USDC_ADDRESS,
    amount_per_order: 10_000_000,  // 10 USDC (6 decimals)
    frequency: WEEKLY,              // 604800 seconds
    total_orders: 12,
    executed_orders: 0,
    smart: false,
    deposited: 120_000_000,         // 120 USDC
    spent: 0,
    btc_received: 0,
    next_execution: block.timestamp + WEEKLY,
    active: true
};

dca_contract.create_order(order);

Smart DCA

let order = DcaOrder {
    // ... same as above ...
    smart: true,
    deposited: 180_000_000,         // 180 USDC (1.5x buffer)
};

dca_contract.create_order(order);

Keeper Bot Architecture

The keeper bot runs off-chain and triggers order execution:

// scripts/dca_keeper.mjs

while (true) {
  // 1. Fetch all active orders
  const orders = await dcaContract.get_active_orders();
  
  // 2. Check which orders are due
  const dueOrders = orders.filter(o => 
    Date.now() >= o.nextExecution
  );
  
  for (const order of dueOrders) {
    // 3. Calculate buy amount
    let amount = order.amountPerOrder;
    
    if (order.smart) {
      // Query Pragma for Mayer Multiple
      const btcPrice = await pragma.get_spot_price("BTC/USD");
      const twap200d = await pragma.get_twap("BTC/USD", 200);
      const mm = btcPrice / twap200d;
      
      // Apply multiplier
      if (mm < 0.8) amount *= 1.5;
      else if (mm < 1.0) amount *= 1.25;
      else if (mm > 2.0) amount *= 0.5;
      else if (mm > 1.5) amount *= 0.75;
    }
    
    // 4. Get AVNU swap quote
    const quote = await avnu.getQuote({
      sellToken: order.sellToken,
      buyToken: WBTC,
      amount: amount
    });
    
    // 5. Execute order on-chain
    await dcaContract.execute_order(
      order.id,
      quote.routes,
      amount
    );
  }
  
  await sleep(60_000); // Check every minute
}

Order Execution

Execution Steps

When a keeper triggers execution:

1. Verify Timing: Contract checks block.timestamp >= nextExecution
2. Verify Funds: Ensure sufficient deposited - spent balance
3. Execute Swap: Call AVNU router with provided routes
4. Transfer WBTC: Send purchased WBTC directly to user
5. Update State:
   • Increment executedOrders
   • Update spent amount
   • Update btcReceived
   • Set nextExecution to current time + frequency
6. Auto-Complete: If executedOrders == totalOrders, mark inactive and refund remaining

Gas & Fees

Keeper Fee: 2% of order amount (configurable)

Example:

Order: 10 USDC
Keeper fee: 0.2 USDC (2%)
Swap amount: 9.8 USDC → WBTC

Gas: Paid by keeper bot (fee compensates gas costs)

Failure Handling

Order execution can fail due to:

• Insufficient DEX liquidity
• High slippage (> 5%)
• Swap deadline exceeded

Keeper will retry on next iteration (1 minute later).

If an order repeatedly fails, it will be skipped after 10 attempts. User can cancel and create a new order.

Cancel Order

Users can cancel active orders anytime:

dca_contract.cancel_order(order_id);

Refund Calculation:

refund = deposited - spent

Example:

• Deposited: 180 USDC
• Executed: 3/12 orders (45 USDC spent)
• Refund: 135 USDC

Supported Sell Tokens

Token	Address	Decimals
USDC	0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8	6
USDT	0x068f5c6a61780768455de69077e07e89787839bf8166decfbf92b645209c0fb8	6
ETH	0x049d36570d4e46f48e99674bd3fcc84644ddd6b96f7c741b1562b82f9e004dc7	18
STRK	0x04718f5a0fc34cc1af16a1cdee98ffb20c31f5cd61d6ab07201858f4287c938d	18

All tokens are swapped to WBTC via AVNU DEX aggregator, which routes through Ekubo, Jediswap, and other DEXes for best rates.

Frequency Options

Frequency	Seconds	Description
Daily	86,400	Execute once per day
Weekly	604,800	Execute once per week
Bi-weekly	1,209,600	Execute once per 2 weeks
Monthly	2,592,000	Execute once per 30 days

DCA Contract

Address: 0x0730f5de50171590132ff9238859d7eccbfa8359393f52083b3b88b397955e56

Key Functions:

// Create new DCA order
fn create_order(
    sell_token: ContractAddress,
    amount_per_order: u256,
    frequency: u64,
    total_orders: u32,
    smart: bool
) -> u256;

// Execute due order (keeper only)
fn execute_order(
    order_id: u256,
    routes: Array<Route>,
    amount: u256
);

// Cancel order (user only)
fn cancel_order(order_id: u256);

// View functions
fn get_order(order_id: u256) -> DcaOrder;
fn get_user_orders(user: ContractAddress) -> Array<u256>;
fn get_active_orders() -> Array<DcaOrder>;

Example Order Lifecycle

Week 1-4

Order Created:
  Sell: USDC
  Amount: 10 USDC/order
  Frequency: Weekly
  Total: 12 orders
  Smart: true
  Deposited: 180 USDC

Week 1: MM=0.75 → Buy 15 USDC (1.5x) → 0.00015 WBTC received
Week 2: MM=0.92 → Buy 12.5 USDC (1.25x) → 0.00013 WBTC received
Week 3: MM=1.10 → Buy 10 USDC (1.0x) → 0.000105 WBTC received
Week 4: MM=1.35 → Buy 10 USDC (1.0x) → 0.000098 WBTC received

Total spent: 47.5 USDC
Total BTC: 0.000503 WBTC
Remaining: 132.5 USDC

Week 5-8

Week 5: MM=1.65 → Buy 7.5 USDC (0.75x) → 0.000072 WBTC received
Week 6: MM=2.10 → Buy 5 USDC (0.5x) → 0.000046 WBTC received
Week 7: MM=1.95 → Buy 7.5 USDC (0.75x) → 0.000068 WBTC received
Week 8: MM=1.40 → Buy 10 USDC (1.0x) → 0.000089 WBTC received

Total spent: 77.5 USDC
Total BTC: 0.000778 WBTC
Remaining: 102.5 USDC

Completion

After 12 weeks:
  Total BTC received: 0.001234 WBTC
  Total spent: 115 USDC
  Refunded: 65 USDC

vs Standard DCA (120 USDC fixed):
  Total BTC received: 0.001150 WBTC
  
Smart DCA Result: +7.3% more BTC

Risk Factors

• Swap slippage: High volatility can cause unfavorable execution prices
• Price volatility: BTC price can change between order creation and execution
• DEX liquidity: Low liquidity may prevent large orders from executing
• Oracle risk: Pragma oracle outage could delay Smart DCA execution
• Keeper availability: If keeper bot goes offline, orders won’t execute on time

Next Steps

Create Your First DCA Order

Set up automated BTC purchases

Understanding Mayer Multiple

Learn the strategy behind Smart DCA

DCA Contract Reference

Technical documentation and ABIs

Run Your Own Keeper Bot

Deploy a keeper bot for order execution