Proposal Due Date: N/A
Overview
This proposal introduces a Recurring Buys feature for the ShapeShift platform, enabling users to automate investments using Auto Dollar Cost Averaging (ADCA). Users can set preferences to automatically invest in FOX, USDC, and USDA based on metrics such as time intervals, price movements, or volatility percentages. This innovation simplifies investment strategies, enhances user engagement, and strengthens liquidity within the ShapeShift ecosystem.
Benefits to the ShapeShift Ecosystem
- Steady Capital Inflow
- Regular buys ensure consistent capital flow, improving liquidity and trading stability on ShapeShift.
- Increased User Engagement
- Automating investments encourages users to remain active and engaged in the ecosystem.
- Risk Mitigation
- ADCA reduces the impact of market volatility by spreading investments over time, minimizing risks.
- Simplified Financial Management
- Users can automate investments, saving time and reducing the need for constant market monitoring.
- Enhanced Trading Volume
- Regular purchases contribute to increased trading activity, attracting more users and liquidity providers.
Differentiation from Existing Solutions
- Customizable Metrics
- ShapeShift’s Recurring Buys feature offers customizable metrics, enabling users to tailor investment strategies to their needs.
- Integration with USDA
- By including USDA alongside FOX and USDC, users gain access to stable, secure options for automated investments.
- Enhanced Automation
- The “set and forget” design allows users to automate recurring buys with minimal intervention.
- Incentives and Rewards
- Unique benefits like reduced trading fees or enhanced rewards for recurring buy participants differentiate ShapeShift from competitors.
How It Works
- User Setup
- Users configure recurring buys via the ShapeShift app or web platform.
- Metrics such as time intervals (daily, weekly), price movements, or volatility percentages are selected.
- Automated Execution
- Buy orders are triggered automatically based on user-defined metrics.
- Liquidity Management
- Backend systems maintain and monitor liquidity pools for seamless transactions.
- Rewards and Incentives
- Participants in recurring buys may receive rewards such as fee reductions or increased APY rates.
- Security and Compliance
- Two factor authentication, encryption, and adherence to KYC/AML regulations ensure user safety and regulatory compliance.
- User Support and Education
- Tutorials, FAQs, and customer support help users optimize their recurring buy strategies.
Proposal Goals
- Simplify Investment Strategies
- Automate recurring buys to make investments effortless for users.
- Boost User Engagement
- Keep users active within the ShapeShift ecosystem through automated, convenient features.
- Enhance Liquidity and Stability
- Ensure steady capital inflow, improving market efficiency.
- Mitigate Risks
- Help users manage volatility by spreading investments over time.
- Integrate Financial Services
- Create a unified ecosystem by connecting automated buys with USDA, USDC, and FOX.
Problem It Solves
- Manual Investment Challenges
- Solution: Automate the process, reducing user effort and emotional trading errors.
- Market Volatility
- Solution: ADCA smoothens market fluctuations by averaging purchase prices over time.
- User Retention
- Solution: Automation encourages long-term engagement within the ShapeShift ecosystem.
- Liquidity Gaps
- Solution: Recurring buys generate consistent liquidity, ensuring smoother trading conditions.
- Fragmented Financial Services
- Solution: Integration with USDA and USDC streamlines investment and spending management.
Scope of Work
Technical Development
- API Integration
- Connect ShapeShift wallets with FOX, USDC, and USDA for seamless transactions.
- Backend Processing
- Implement automated buy algorithms to handle real time execution.
User Interface Design
- Dashboard
- Add tools for configuring and monitoring recurring buys.
- Notifications
- Notify users of successful purchases or significant market changes.
Security and Compliance
- Encryption and Authentication
- Protect user data and transactions with best-in-class security.
- Regulatory Compliance
- Ensure adherence to KYC/AML requirements.
Marketing and Education
- Campaigns
- Promote the feature to new and existing users.
- Educational Resources
- Provide tutorials and FAQs to enhance adoption.
- Equation for Optimal ADCA Timing
- To create an equation for determining the best time to execute ADCA, we need to consider factors like time intervals, price movement, and volatility. A simplified version of the equation could look like this:
Roadblocks and Barriers to Success
- Technical Challenges
- Seamless integration of APIs and algorithms requires rigorous testing and validation.
- Security Considerations
- Ensuring robust data protection and fraud prevention mechanisms is crucial.
- User Adoption
- Targeted marketing and incentives are necessary to attract and retain users.
- Regulatory Compliance
- Navigating jurisdictional differences in financial regulations is essential for global deployment.
Evaluation Metrics
- Functional Performance
- Smooth execution of recurring buys based on user-defined metrics.
- User Adoption
- Growth in the number of users utilizing the recurring buy feature.
- Liquidity Impact
- Increased liquidity and reduced slippage in FOX, USDC, and USDA trading pairs.
- Security and Compliance
- Successful audits and adherence to regulatory standards.
Submission Requirements
- Technical Specifications
- A detailed plan for API integration, backend processing, and user interface updates.
- Regulatory Framework
- Outline of compliance measures for KYC/AML requirements since this is self custodial we should be fine!
- Marketing Strategy
- Plans for educating users and driving adoption.
Submission Method
- Blockchain: Mainnet
- Due Date: N/A
Budget Amount
The budget will be determined based on the development team’s assessment.
By implementing this proposal, ShapeShift can offer an innovative and user-friendly feature that boosts user engagement, strengthens liquidity, and enhances the overall experience of FOX, USDC, and USDA holders.