💳Non-Custodial DCA

Whether you are a DeFi noob looking to make your first purchase or a whale looking to execute a TWAP-style order, centralized exchanges generally serve as the first entry point into crypto trading. However, given the recent events (FTX, Silvergate Bank, etc), the custodial risk that comes with using centralized services far outweighs the benefits.

There are very talented teams that have created user-friendly wallets (Rainbow, Uniswap, etc) to help users interact with DeFi and invest in a non-custodial way. And with the addition of TWAMMs in the backend, the products and service offerings can be vastly improved.

Whales & Minnows DCA

DCA is a high-value add functionality because it allows retail investors to take a position without having to time the market. It's also a great source of non-toxic order flow that liquidity providers would love to have. Additionally, when this can be done non-custodially and on-chain, this becomes a killer feature for wallets to leverage TWAMMs for.

When taking a large position, timing the market is very risky and it's prudent to gradually fill your order. Unfortunately, everything available on-chain today completes your order in a single block unless you're sophisticated enough to set and withdraw your out-of-range Uniswap V3 position.

Soon, the reason to use CEX will be simply to on-ramp into crypto. TWAMMs will unlock passive traders' ability to invest in the market while not taking custodial risk. Additionally, it will increase the amount of active capital deployed on-chain, thus growing the pie for all other protocols as well.

Future Vision

Centralized exchanges are already aware of this trend and the forward-thinking ones are positioned to be the customer relationship owners. Coinbase recently introduced their Wallet as a Service which makes it easier to onboard CEX users directly into DeFi protocols front-ends.