10. How to DCA Into SpaceX With DLMM (SPCX)

DLMM Clan is an independent DeFi liquidity-provider education community for EVM chains, distinct from Meteora, which is a DLMM protocol on Solana. In this walkthrough, CryptoCroco shows how to dollar-cost average into tokenized SpaceX (SPCX) on the Robinhood Chain with DLMM on SectorOne, so traders pay you instead of you paying a hidden broker spread. He lays out his post-IPO thesis: SpaceX ran about 50% to $225, retraced about 50% from that top, and share unlocks keep adding supply through December, so he treats $100 as the first psychological entry and keeps cash for a $70 to $80 add. Live on SectorOne he opens a Spot position of about 100 bins down to $100 (33 cents gas, more than Base), then stacks a Bid-Ask USDG layer so he buys more as price falls. He prefers this to limit orders because the range earns fees from the moment it is live while it DCAs into SPCX.

Intro: getting paid to trade tokenized stocks

Hi. I don't know if you heard, but Robinhood is tokenizing their stocks on chain. It's something that happens right now already. And if you are trading their stocks on the Robinhood Chain, you're actually getting paid for trading them there. Now, on a standard broker, you are accruing 2 types of fees. The first one is just the transaction fee. It's very transparent, you know about it. But the second one, that one is a bit more hidden. It's the spread you're paying to market makers. And now that Robinhood is tokenizing their shares on chain, you can use decentralized exchanges, like for example, SectorOne. And the great thing is if you use these decentralized exchanges, you can get paid for your trades. But this is not a short-lived incentive program or something like this. This is actually baked into the technology that is being used, and it's not something that will go away with time. When you migrate there, you will always have this benefit.

Now, I have opened more than 1000 positions over the past 5 years, and the one thing I must say is now since I can not only trade crypto tokens on chain, but even my stocks, there's no way I can ever go back again.

What this tutorial covers

Now, in today's video, I want to show you exactly 3 things. First of all, how do you open a dollar cost average position, for example, into SpaceX and get paid for it? Second, I'm going to share a little bit my outlook and my thesis for SpaceX. And then third, I will show you exactly how you can adapt this along the way, your position, to get the best entry into SpaceX for you. You can apply this to any type of stock that is available on Robinhood Chain. I'm going to do it for SpaceX because it's a token that I am interested in right now. Let's get into it.

The material presented in this tutorial and accompanying presentation is intended for informational purposes only and should not be interpreted as financial advice. Any investment decisions or positions you take are solely at your own risk.

SpaceX since the IPO

This is SpaceX from its IPO, and what you can see is what did it do in the beginning after the price. The price rise all the way to 50% up, all the way to 225 US dollars per share. And then since then, it has been retracing back down 50% from its current top. And if you look at from the IPO price when it started, because this is, I would say, this is not really... Most participants were locked back here, and even the one entering, they could not exit anymore, so this was highly manufactured. Whereas here now you have unlocks happening all the way until December, so all the way until here, unlocks of shares are going to happen. So, more and more supply is going to hit the market. I think just today, it almost doubled again in the supply. So many of the users, not users, workers of SpaceX, they can now sell their options that they got.

Why $100 now, with cash left for $70 to $80

Now, what you do here is if you look now from the IPO cost down, price down, you're about, yeah, until the bottom, you're about 30% down. So I think this is quite a good time to enter. I think 100 dollars is probably a psychological resistance, so I think it will definitely play with that. That's about 33% from the price. But if you look at other, like Palantir or something, they went even from their top, I think 80% down. If you would do something like that, 80% down, 90% down from the top, you end up down here. So you end up at, yeah, like 30 dollars per share or something. I don't think this is going to happen, but I think it would be reasonable opening a position all the way until 80, maybe down. That would be from its top 65%. I think that's not unreasonable, considering how much of supply is being unlocked all the way until December. And then I think you will be able to see some reversal in this. And at the same time, this is important to note, obviously the market is always front running, right? So right now, it's front running all the supply that's going to hit the market. And later on, I assume, we might see it recovering earlier than December, even though more unlocks are coming, because many participants in the market foresee that the end of the unlocks are near, and with that, will start accumulating earlier.

Yeah, so I will open up positions somewhat maximum down to 80, but right now I'm going to focus on a position down to 100 and leave some cash for later if the price drops from 100 to maybe 70 dollars. So I'm going to have 2 positions open there.

Opening a Spot position down to $100

Now let's go back. What I'm going to do is here, we're here. I love this part. So now I can really look in here and say, "Okay, my position, I want this position to go all the way down to 100." There we go. This is how far, and I'm going to allocate this, and I want to split it, so I'm going to go in advanced mode and allocate around. This looks pretty spot on. Go a bit further down like this. So this is now 100 bins going down. Spot position, and I deploy half. And let's get going.

Okay. Provide liquidity. See how much that costs. I actually don't have a lot of experience yet with Robinhood Chain, so I don't know how much gas cost this will be. Okay, 33 cent. It is definitely more expensive than the Base chain is, but at the same time, the Base chain is extremely cheap in that sense.

So what you can see now here is the first position that we just opened. It goes all the way down to 100 dollars. This looks pretty good to me.

Adding a Bid-Ask position to scale in

And now I want to combine this with a Bid-Ask position, so I scale more in the further the price falls. So I'm going to do this now. I'm going to allocate maximum of USDG, and then I can do 80 bins, but I go in advanced mode. I pull this over. You can see here. And then here, I can also just type here 0, and then it goes much further down, as you can see. And then I can just adjust the last. It really hits exactly like my other position. This looks perfect. So now I have the position exactly like my other position. I can see that it's in the top a bit higher, so I say no, I want to also just enter here. So I put this area. This is what I'm covering, and it's a Bid-Ask position. I enable USDG. Signature. And I allocate 20 cents. So this was 20 cents, and it goes in batches 2 cents. So it's 20 cents and 6 cents. So I think that's a reasonable price.

Now you can see my position is building down here. It will show up here in a second. It will update here. You will be able to see the position here, as well as down here, there will be an updated view of my total combined position. There it is.

Why DCA with DLMM instead of limit orders

And this is what I truly love now that Robinhood is tokenizing stocks on their Robinhood Chain. This is the way I trade. I don't like to do limit orders because, yeah, they get filled or not, and then there's always the... You still pay somehow in some areas. Even with limit orders, it can be that you pay some kind of fee at the end, depending on the exchange you're using. And this way gives me so much flexibility. So right now, from the moment I'm in, I am A, earning fees, so people are paying me for my trade. And on top of that, I get to step by step, like DCA into the token, because honestly, I don't know how much SpaceX is going to fall. I'm not a professional in this. I just believe it will fall further, and this is the bet that I'm taking. I want to buy some of the SpaceX tokens. I think the trajectory is downwards because of the unlocks. This is my thesis. This is what I do with my money. And DLMM on SectorOne allows me now to really shape this exactly to my thesis.

So what I'm going to do next in the next video is going to look further to the 80 or 70 dollar price, but only once the price has really gone down here. Then I'm going to check, okay, how far through the unlocks are we? Are we in August, September, or are we already towards December? If we are already almost at December, I can assume, okay, well, price might not fall much further from here based on my thesis.

Join the DLMM Clan

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