Comment on page
The DeFi application for Dollar-Cost Averaging
PandExchange is a decentralized application that allows users to create Dollar-Cost Averaging (DCA) investment plans from one cryptocurrency to another using any decentralized exchange, from an ever growing curated list. PandExchange allows user to stay decentralized at all times thanks to its innovative Validators Ecosystem, a way to decentralized future transactions executions and to reward our community.
Dollar-cost averaging is a popular investment strategy that involves buying a fixed dollar amount of an asset at regular intervals, regardless of the asset's price. This helps to reduce the impact of volatility on the overall investment and can be a useful tool for managing risk. However, current solutions for implementing DCA in the crypto space are either centralized or rely on third-party services, which can create security and trust issues.
PandExchange solves this problem by allowing users to create DCA Plans (DCAP) on a decentralized platform. The platform is built on the BNB Chain, Polygon and Arbitrum networks, which provide fast and low-cost transactions, making it ideal for trading cryptocurrencies in multiple occurrences. Moreover, PandExchange allow users to perform their DCAP on any validated DEX on any of the available networks. Contact us if your favorite DEX is not there yet!
It is currently not possible on most blockchains to schedule DApp's functions execution purely from a DApp for technical reasons. This implies that to execute a DApp function at a certain time, or after a set period, an external entity must come into play. Often, in DApp needing to schedule functions executions, this entity is centralized and handled by the smart contract owner(s). The problem with this approach is that if this entity stop functioning for any reasons, the whole DApp is potentially rendered useless.
To solve this single point of failure problem, PandExchange decentralize the execution of the function needed for the DCAP to be executed. Anyone can participate in the PandExchange Ecosystem by executing the transactions in stead of the creator of a DCAP.
A DCAP is generally composed of several occurrences, on which a fixed amount of crypto A will be exchanged for an amount of crypto B. The execution of these occurrences, which consists on updating the state of the DCAP in the DApp and performing the exchange through an external DEX, is available to do by anyone and through different means. In exchange for calling the execution function for an occurrence, the caller is rewarded with a fee set by the initial user, whom created the DCAP. This fee is here to compensate the gas fees and motivate users to participate in the PandExchange Ecosystem. This fee is delivered in the input cryptocurrency of the DCAP.
To call the function responsible for executing an occurrence, the ID of the DCAP must be retrieved, and the call can only be made in the right timeframe. To easily keep track of all these information, PandExchange aggregate and keep up-to-date everything for you. These information are then displayed on PandExchange WebApp to either show the user their own DCAP or display every DCAP occurrence that needs to be executed, as well as the rewards for doing so.
The execution of DCAP occurrences can be done by three means:
- Using PandExchange Pool tab, which simply display all occurrences to be executed
- Using PandExchange API, which deliver all key information and allow easy automation of the process
- Using a custom system by calling directly the contract
We recommend the use of PandExchange website Pool tab for quick and easy participation in the PandExchange Ecosystem. For automated transactions execution, we recommend the future PandExchange API that will be released as soon as possible.
- DCA Plans: Create, monitor and manage your crypto-to-crypto DCAP on all available chains. Create it with different parameters such as period, exchanged amount, number of occurrences or even the slippage tolerance.
- Multiple DEX Availability: PandExchange allows users to choose the DEX they want to use for each DCA Plan, from a list of verified DEX that will be gradually extended:
- Binance Smart Chain:
- Trader Joe
- Fully decentralized: PandExchange operates with a decentralized method to validate future transactions on behalf of the users. No one can stop you from using decentralized DCA
- Trustless: Even though the input tokens are stocked on the contract during the DCA Plan duration, users can cancel it at all time and retrieve all remaining input tokens. Output tokens are never kept on the contract as they are directly sent to the user after the swap. Only the user can control their funds on PandExchange, even our team cannot touch your funds in any ways
- Easy to use: The platform is user-friendly and easy to navigate, making it accessible to users of all levels of technical expertise. The only requirement is knowing how to use a web wallet such as Metamask or other available wallets
- Low fees: Transactions on the BSC, Polygon and Arbitrum networks are fast and inexpensive, which helps to keep trading costs low for users. Gas fee is one of the most important problem when using DCA on a blockchain, as multiplying the number of transactions also multiply the amount of gas spent
PandExchange uses two distinct fees, an owner fee and a Validator fee. The owner fee is a fixed 0.5% fee taken during the creation of a DCAP by any user. This fee is sent to PandExchange contract owner, and is used to invest in PandExchange Ecosystem for development and marketing purpose. This fee will be lowered and/or completely deleted in the future as PandExchange develop itself. Also keep in mind that the DEX you will perform the exchanges through probably has a fee, so be sure to make your research about the best DEX for you to use.
The Validator fee, which is set by the user, is the fee paid by the user to any user that execute an occurrence of a DCAP in their stead. This fee is here to compensate for the gas fee and motivate users to become DCAP transaction Validators in order to keep the PandExchange Ecosystem 100% decentralized. You can think of this fee as prepaying the gas for all the future exchanges of your investment plan. Of course, as this fee is here to compensate for gas fees, its amount is also dependent on the network you are using. This fee can be adjusted at any time to better fit your current DCAP needs. PandExchange web3 app calculate an estimation of this fee for you and you can modify it at any time once you create your DCAP.
Using any decentralized application includes a form of risk for users. At PandExchange, we are doing our utmost best to minimize your risks as best as we can. As for any Smart Contract, a security risk is always present. To ensure your funds security, our team has worked both on the reduction of the risks and on the mitigation of the severity of the outcome of potential issues.
To enhance the security robustness, we implemented multiple measures to mitigate the risk of security failures. Firstly, we adhered to the Test Driven Development, conducting numerous tests throughout the Smart Contract development process to identify and rectify any evident issues. Additionally, we performed a comprehensive manual audit of the Smart Contract, utilizing cutting-edge tools and methodologies to identify any potential vulnerabilities that may have been missed during testing. Moreover, we engaged the services of an esteemed external auditing firm specializing in Smart Contracts to conduct an independent review of our work, further minimizing potential risks. The detailed audit report can be accessed here.
To mitigate the outcome in case PandExchange suffer from an attack despite the precautions mentioned above, our team is able to pause certain functions of our Smart Contract. We are able to pause:
- The function responsible for creating a DCAP. This allows us to prevent any user to send their fund to our DApp in case it is compromised. This do not affect any funds already on the Smart Contract.
- The function responsible for performing all the exchanges of a DCAP. This allows us to prevent funds from being exchange from a crypto A to a crypto B through the DEX selected by the DCAP owner.
The ability to pause these two function allows use to stop any funds from being added on the contract or moved to any address that is not the initial owner of these funds, these two possibilities being where all the potential risks exist. What we cannot pause is the function responsible for cancelling a DCAP, which send back all unexchanged funds to the DCAP owner. Note that any already exchanged fund is directly sent to the owner and doesn't transit by PandExchange Smart Contract.
In case of an attack on any of our Smart Contract, you will be warned through our website and social media outlet, informed on what is happening and eventually any steps we recommend our users to perform, such as cancelling any active DCA Plan in the worst case.
PandExchange aim to become a major hub for DCA investment on relevant blockchains, such as Polygon, BSC or Abitrum. In the short term, PandExchange will be deployed on the most pertinent blockchains. Our effort will be aimed toward PandExchange core capabilities. In the long run, PandExchange will be enhanced with multiple additional decentralized capabilities, such as quality of life features, handling the optimal crypto portfolio for you and operating as a fully functional DEX with DCA at its core. To know more about PandExchange plans for the future, take a look at the Roadmap section of our documentation