> For the complete documentation index, see [llms.txt](https://cron-finance.gitbook.io/twamm/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cron-finance.gitbook.io/twamm/use-cases/open-market-operations.md).

# Open Market Operations

Protocols might want to buy undervalued assets or diversify overvalued assets into stablecoins. Today, the options available to them in order of best execution are OTC, Aggregators, DEXs, and custom scripts. Each option has corresponding pros & cons listed in the [*Competition*](https://docs.cronfi.com/twamm/overview/competition) section.

### What is the problem?

The problems for open market operations are similar to the ones DAOs face, see the DAO page for more details:

{% embed url="<https://docs.cronfi.com/twamm/use-cases/daos#what-is-the-problem>" %}

Some well-funded DAOs have the engineering resources to put together tools to address the poor execution on-chain. However, this diverts valuable developer time, incurs audit costs, and is generally not as efficient or flexible as TWAMMs.&#x20;

{% hint style="warning" %}
Imagine re-building a DEX every time you needed to swap tokens instead of plugging into Uniswap.
{% endhint %}

### Why TWAMMs are superior?

Beyond the development costs, these one-off tools have 3rd party dependencies and rely on `keepers` paying the gas to execute the trades. Additionally, they are subject to MEV attack vectors based on the size of sub-orders.

A side-by-side accounting comparing the surplus buffer signal request in DSSKiln vs. TWAMM appears below. This analysis doesn’t even account for the fill improvement that would result from the finer grain DCA of 2160 vs. 100 orders.

{% embed url="<https://forum.makerdao.com/t/signal-request-deploy-a-trial-permissionless-open-market-operation-resurrect-the-burn/15381/25>" %}

*TLDR*; TWAMM would cost \~**50% less!**

```xml
DAI <> ETH
Swap Amount:  $3M
Time Period:  90 days
Num Orders:   100
Sub Orders:   $30k => $3M / 100
Avg Swap Gas: $50 // uniswap v3 30-day average
Avg Slippage: $50 // uniswap v3 quote
Uniswap Fee:  0.3% // can be lower/higher depending on route/pool

----------------------
Swap fees:  - $9k
Gas fees:   - $5k
Slippage:   - $5k

Total Fees: - $19k
----------------------
Eth Return:   $2.981M
Net Cost:     -0.633%
```

```xml
TWAMM DAI <> ETH interval 1 hour, $1M ETH/DAI liquidity
Swap Amount:  $3M
Time Period:  90 days
Num Orders:   2160 // 1 per hour for 90 days
Sub Orders:   ~$1400 ~> $3M / 2160 
Avg Swap Gas: $0 // sub orders are not written to the chain
Avg Slippage: $0 // negligible slippage for $1400 trade in a $1M pool
Swap/W-draw:  $100 // gas for opening & closing position
TWAMM Fee:    0.3%
----------------------
Swap fees:  - $9k
Gas fees:   - $100
Slippage:   - $0

Total Fees: - $9.1k
----------------------
Eth Return:   $2.991M
Net Cost:     ~0.3%
```

### Examples

Here are just a few DAOs that have built one-off tools for TWAP-style market operations.

{% embed url="<https://github.com/banteg/yfi-buyer>" %}

{% embed url="<https://github.com/nounsDAO/token-buyer/>" %}

{% embed url="<https://github.com/makerdao/dss-kiln>" %}

{% embed url="<https://github.com/charlesndalton/milkman>" %}


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