Using this Strategy, It Is Never Too Late to Invest in ETH

Why it matters: People are getting more bullish about ETH recently. When it comes to long-term portfolio building, DCA has been considered as one of the most effective investment strategies.

Zoom in: The time-weighted average price is a mathematical calculation of price over time often used by large traders. Dollar cost averaging is an investing technique to buy or sell the same dollar amount of an asset in order to get a better price. SIZE offers the first DeFi primitive for users to execute trades at 30-minute TWAP with zero price impact.

Zoom out: Since SIZE’s 30-minute TWAP is a building block of day/week-long DCA, we are thinking about adding the support for DCA so that you can use SIZE to build long-term portfolio. If you are interested in this feature, have any feedback, or simply want to use it from Day 1, click here and join the waitlist for DCA! Please also share it with your friends and help them secure their spot on the waitlist for this feature. We will have a surprise for the 20 people with the most number of referrals.

What is TWAP?

SIZE UI showing how 30-minute TWAP smooths spot prices

Time-weighted average price (TWAP) is a strategy used by traders to minimize the price impact of large orders.

TWAP aims to better reflect the true market price of an asset by averaging the price of an asset over some time. It is a more sophisticated strategy often used in traditional financial markets.

For example, the average of all the WETH-USDC prices over 30 minutes would be considered a 30-minute TWAP. This will be a smoother representation of market prices and can offer a benchmark for traders that are looking to place large orders.

What is DCA?

Dollar-cost averaging is an investment strategy where a set amount of capital is deployed at fixed intervals. Often it is used to add or reduce an investor’s position while minimizing the effects of market volatility.

For example, instead of trying to time the market and buy $100,000 of ETH all at once, a trader may buy $10,000 of ETH each week for 10 weeks. In this way, dollar-cost averaging is an effective investment strategy that avoids trying to time the market. While a trader might not get the lowest price for her trade, she can also avoid paying the highest price as well, getting an average of many different trades.

Many people practice a form of DCA by investing a part of their paychecks into a retirement savings account every month. Deploying a similar amount of capital each month dampens volatility and is a solid strategy to grow your investments.

The Difference Between DCA and TWAP

While often used interchangeably, dollar cost averaging and time-weighted average prices are slightly different. DCA is an investment strategy whereas TWAP is a calculation of an asset’s price.

The confusion comes because in traditional finance executing an order based on a TWAP often means using regularly spaced orders, very similar to a DCA strategy.

In traditional finance, OTC desks and brokers will often offer clients trade execution at or around a time-weighted average price. This offers a neutral benchmark for both parties to agree on. A client will come with a large order and what often happens is the trading desk will then execute the client’s order in small pieces over a set period. The client can get a better price than if the entire trade was executed at once.

TWAP then is usually for traders looking to enter or exit a large position without too much price impact. DCA is usually for longer-term investors that don’t want to worry about timing the market.

These two audiences also tend to have different psychologies. Traders who use TWAP are often trying to enter or exit a position quickly while getting the best price possible. DCA is more the domain of long-term investors who want to build a portfolio without deciding on when to do trades.

DCA and TWAP in Crypto

Several protocols offer users the ability to conduct DCA transactions. These work by a user depositing USDC or another stablecoin and then a smart contract will execute a regular buy based on the DCA period specified by the user.

You may also be familiar with the DCA strategies provided by centralized exchanges like Coinbase, which will let you set weekly or monthly buys of a certain dollar size through their UI.

SIZE is different because it allows traders to execute at the 30-minute TWAP price with zero price impact.

DCA protocols work by executing multiple market buys of an asset over a set time. On Ethereum mainnet, this can be expensive because of gas fees. With a DCA buy or sell every hour or even every day, the cost of gas fees could heavily eat in to the investment. For this reason, most DCA protocols are running on Layer 2 networks or are for buys spaced further apart.

Use TWAP with SIZE

Integral SIZE offers the first DeFi primitive to allow users to execute a trade at a TWAP price.

Instead of a traditional swap, Integral SIZE uses Uniswap v2 as a price oracle. Once an order is submitted, the protocol queries Uniswap to get spot prices over the next 30 minutes. By calculating the arithmetic mean of these prices, the protocol uses this time-weighted average price to execute your order. All of this is done on-chain, and without needing a custom price curve.

SIZE calculates the 30-minute TWAP of an asset and then executes a swap at this price. In this way, large trades are executed with no price impact with transparent pricing.

While SIZE launched with just the 30-minute TWAP, we expect to make other durations available based on feedback from the community. You can trade on SIZE today with the WETH-USDC pair or the WETH-CVX pair with other altcoin pairs to be added soon.

Start using SIZE today at and provide any questions, comments, or feedback in our Discord or on Twitter.

This post is for informational purposes only and is not financial advice.


Integral Insights


May 9th, 2024

Integral Insights April ‘24

The combined average daily volume across Ethereum and Arbitrum is now at 8.8 million USD, a remarkable 22% increase compared to last month.


April 25th, 2024

Introducing New Pool Analytics: Elevate Your Liquidity Provision Experience

A standout feature in our latest update is the "LP vs Hold" tab, which provides a comparative analysis of various holding strategies against Integral's LP positions.


April 1st, 2024

Integral Insights March ‘24

We achieved several important milestones, including a new all-time-high daily volume for Arbitrum and the addition of four new pools on the Ethereum mainnet.


March 4th, 2024

Integral Insights February ‘24

Another milestone was reached on February 21st when Integral processed over $2 billion in cumulative volume.


February 1st, 2024

Integral Insights: January ‘24

Our initial launch with the ETH-RPL pool was a success, quickly elevating us to the second most utilized liquidity pool for this pair’s trading.


January 17th, 2024

Is Liquidity Fragmentation Really That Bad?

When the token evolves into a store of value, it attracts outside traders, focusing on trading costs and slippage. This is when concentrated liquidity truly shines.


January 2nd, 2024

2023 Review

At Integral, our focus remains on developing a sustainable product for on-chain trading, serving both traders and liquidity providers.


December 12th, 2023

Integral Now Rewards Liquidity Providers with Trading Fees on Ethereum Mainnet

This enhancement enables liquidity providers (LPs) to directly receive a portion or all trading fees from Integral pools.


December 6th, 2023

Integral Insights: November ‘23

During November, Integral processed an average of approximately 6 million in volume with around 1.5 million in TVL. The system’s overall capital utilization sits at around 350%. It is the 10th most used DEX on Ethereum.


November 28th, 2023

Integral Now Rewards Liquidity Providers with Trading Fees

This enhancement enables liquidity providers (LPs) to directly receive a portion or all trading fees from Integral pools.


November 15th, 2023

How Do University Blockchain Societies Gain So Many Votes?

Explore how university blockchain societies like FranklinDAO and Michigan Blockchain have grown into influential players in DAO governance, utilizing delegated votes and strategic partnerships to shape the future of DeFi protocols like Uniswap, Compound, and Aave.


November 6th, 2023

Integral Insight: October ‘23

We give an update for our work in October and highlight a profitable LP position from a long-term user.


October 26th, 2023

Understanding the Stakes in Lido’s Growing Share of Staked ETH

The community is arguing whether a protocol may have too much control over the Ethereum network. Lido controls a large percentage of staked ETH, which could have consequences for the network’s future security and neutrality.


October 14th, 2023

Changes to Staking and Farming

Looking back at our progress so far and to the future with new updates to staking and farming.


October 11th, 2023

Integral Insight: September ‘23

We give an update for our work in September with utilization going up on higher volume for our new pools.


October 11th, 2023

The Hottest Narratives of the Summer

What were the hottest narratives of the summer? Our DeFi research team delves into the growth of trading bots, RFV traders and more in this overview.


October 2nd, 2023

Uniswap Governance: A Deep Dive

Governance is considered a critical component for the decentralization and community-driven development of DeFi protocols. We take a look at one of the largest goverance ecostystems in DeFi, Uniswap. In this blog post, we'll discuss the landscape of Uniswap's governance, pulling data from empirical research to dissect the system's delegates and proposals, revealing some interesting findings.


September 19th, 2023

What is the DAI Savings Rate (DSR)?

Our research team takes a look at the DAI Savings Rate and its influence on various yield dynamics in DeFi.


September 15th, 2023

Integral Insight: August ‘23

We give an update for our work in August with cheaper gas fees and the launch of the Integral Relayer on Arbitrum!


September 7th, 2023

Integral Relayer Launches on Arbitrum

We are excited to announce the launch of the Atomic Relayer on Arbitrum. This will bring the efficient and tested system for atomic trades to the Arbitrum Layer 2 network!