Drip by Dcaf: Automating Trades for $BONK (and others)
This is part of a series of posts about the Bonk! project on Solana. Check out my profile for the others.
An Introduction to $BONK
$BONK started life as a meme token. And it sort of still is. Big price spike and then a fall.
So far so meme-coin.
But the BONK is different.
If you're interested in defi and crypto then I think you should be paying close attention to what is happening with the Bonk! project. The $BONK LPs (Orca, Raydium etc..) have been consistently high performing pools as goes transaction fees ever since $BONK launched.
Why?
Well the BONK team never stopped building so $BONK usage remains very high.
Read https://www.bonkcoin.com/about and the whitepaper: https://bonkswaps-organization.gitbook.io/bonkswap-white-paper/, and scroll through their Twitter https://twitter.com/bonk_inu and you'll see this team have their eyes set on bigger things.
If you check out their integrations https://www.bonkcoin.com/integrations you'll see they're well on the way to delivering on this vision. There is A LOT here already. And more are being added all the time.
If you follow the Discord link on https://www.bonkswap.io/ it'll take you to the HXRO Discord. blocmates wrote a very good article on what the BONK-HXRO integration is for and why that's important https://blocmates.com/blogmates/defi-flywheels-the-unexpected-hxro-bonk-printer/
Burn Baby Burn
The $BONK burn: For all you degens check out the burn $BONK have implemented. This just keeps running in the background, gradually reducing supply over time.
- https://flipsidecrypto.xyz/kellen/bonk-burns-3aEm3a
- https://www.thebonkfire.com/
- https://twitter.com/BONK_Burn_Bot - burn some BONK and get it tweeted about
I have reservations about burn programs for tokens with hard caps. I can see the upside in the short term being you'll onboard a bunch of people looking to "moon" (and user acquisition is not to be sniffed at) but longer term you want people to use $BONK; not hold it.
Does $BONK need to look to Dogecoin for the long term?
Crazy as this might sound, I think Dogecoin is possibly the eventual winner in POW IF Bitcoin doesn’t remove the hard cap on tokens.
Even if Bitcoin do remove the cap I still think Dogecoin has a real shot at fulfilling the promise Bitcoin had of being a true peer to peer currency. A large part of my reasoning here is they’re actually thinking about how you’d make that happen.
I love their FAQs. Succinct, snarky, and technically on point: https://dogecoin.com/dogepedia/#faq
At some point the people who won’t touch $DOGE because it has a an internet dog on it are way less than those who don’t care how it looks; only how it functions. Hint: this is the younger generations and they are much more technically minded as a cohort.
Dogecoin started out much like $BONK in many ways. They changed the project to suit their longer term vision. I am sure the $BONK community are well aware of that.
Drip by Dcaf: Automating trades
Drip https://www.dcaf.so/ is a simple to use automation tool you can use to conduct trades over a set period of time.
Nominally it's been set up as a dollar cost averaging tool but I think it's a lot more than that. $BONK is a good way to explain that.
Log in with your wallet and go to Deposit https://drip.dcaf.so/deposit
Select the token you want to sell, the token you want to buy and the time period and frequency you want.
Once approved your order will come up under Positions https://drip.dcaf.so/positions
You'll also see an NFT appear in your wallet (as viewed on Magic Eden). This is record of your order. It's much like the NFT you get for locking $MNDE.
If you sell/burn this NFT you'll lose your order.
You can see the status of the order on each position. Click on a position to see more stats and options. With a position open you'll be given extra details of the price and order status. You'll also see two options: Withdraw (buy token) & Close Position
Withdraw (buy token) withdraws the tokens which have already been swapped See the Accrued (buy token) for that amount. Your order will continue as normal.
Close Position does all of the above plus it withdraws your sell token balance and burns the NFT related to the order.
It's probably a stretch to call this true dollar cost averaging. Normally that is a term reserved for the ability to one-click deposit into a range of investments based on amount invested e.g., Investment A 50K = 50% of new investment, Investment B 10K = 10% of new investment etc..
Plenty of CEXs offer the ability to dollar cost average via allowing you to swap one amount proportionally across your entire holding. Some even offer this to be done on regular basis via automated deposits from your bank account/credit card.
But that doesn't mean this isn't a good tool. If you wanted to get into or out of a larger position in a lower liquidity token (like $BONK) doing so over many smaller transactions, over a longer period of time is likely going to achieve a better price.
You can also use this as a safety net for your trades. Say you've decided to convert your $BONK into $SOL but you're worried that the $BONK price will spike the next day. Set up your trade here to gradually roll out over a few days and if the market moves then cancel the remaining swaps.
I'm really interested to see what this project does next as I think this is a really powerful piece of automation they've made available to users and we're only at the starting point to what it gets used for.
