Don-key’s Auto DCA and Farm FAQ
3 min readAug 19, 2022

With Don-key’s first bear market product soon to be released, the team is pre-answering all your questions with an FAQ!

Don-key’s Auto DCA and farm represents a shift from our focus specifically on strictly yield farming to a broader more general offering of products in Social DeFi. It’s a new term and it refers to any of Don-key’s upcoming decentralized financial products that utilizes the community to maximize wealth creation.

  1. What does DCA mean?

DCA (daily cost averaging) refers to an investment strategy in which a sum of money is invested every day over a pre-determined range of time, rather than investing all at once while trying to time the market.

2. What are the benefits of DCA?

Timing the market is not just hard; it’s impossible. Instead of getting caught up in market frenzy, research shows the best results come from regular incremental investments.

3. What is Don-key’s Auto Farm and DCA

This investment product will be a decentralized, smart contract-based auto DCA (daily cost average) tool that will let users deposit BUSD and distribute daily purchases of WBTC and ETH across any time frame.

In addition, Users can choose to allocate a portion of their BUSD to DCA into $DON token throughout the same time frame chosen for the WBTC or ETH.

4. What is the Social DeFi element of Don-key’s Auto Farm and DCA?

Don-key’s DCA pool will be combined with a social element. 0.5% of entry deposits and exit withdrawals will be redistributed to current members of the pool, allowing the earliest DCA-ers to profit the most from compounding and reoccurring BTC and ETH investments.

The entry and exit fee will be distributed weighted according to those who hold the most $DON via the $DON DCA (not related to how much $DON you hold in your wallet.)

5. Will WBTC and ETH DCA be launched at the same time?

First WBTC will go live, then shortly after ETH DCA will follow.

6. Can investors withdraw their funds whenever they’d like to?

Yes, investors can withdraw both their outstanding BUSD as well as any funds converted into WBTC, ETH, or DON at any given time. Keep in mind any BUSD that has not yet been utilized to purchase WBTC or ETH will first execute a one-time purchase of the full outstanding amount, and the investor will receive all funds in WBTC or ETH.

7. Are there any other fees involved?

The entry fee and exit fee is 1% each, from which 50% goes to all other investors based on their score as explained above.

8. What's the big deal here?

DCA is an effective strategy and even big CEXs offer automatized DCA tools, however a fully decentralized smart contract based DCA tool is quite the achievement.

About Don-key Finance is the only social yield farming platform to democratize expertise in yield farming. Investors need profitable strategies and farmers need extra liquidity — Don-key brings them together in an open-source competition-driven marketplace.

With just one-click investors can route their liquidity — in whichever token they chose — through community-designed strategies that are updated to chase the highest available APY while minimizing risk.

Competitive Yield Farming is a full-time job; Don-key does it, so you don’t have to.

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