A developer for Olympus DAO has released a new protocol that aims to facilitate stablecoin swaps without the price curve.
The person, who goes by “Ohmzeus” confirmed the release of an experimental project, named Range, which is made out of decentralized stablecoin pools that don’t use price curves, describing Range as an “optimistic stablecoin swap protocol” created to “abandon a pricing curve altogether.”
The protocol is using the idea that both tokens found in a pool have an equal value – this is known as “Range pools.” As of now, there are six live pools: for DAI, LUSD, FRAX, MIM, USDT, and USDC. The developer did highlight the fact that the pools aren’t audited, therefore, users shouldn’t deposit what they can’t afford to lose.
Ohmzeus commented: “My expectation is that (at least early on) the pool swings from range extreme to range extreme as the pooled tokens fluctuate around peg. This should produce heavy fee volume from arbitrage.”