Range

Disclaimer: Range is unaudited. It may have serious security vulnerabilities that would lead to loss of funds. Please review the code yourself and expose only what you can afford to lose. If you do not consider yourself a technical user, please refrain from using Range until it has been better tested.

Range is an optimisic stableswap protocol. We make the optimistic assumption that the tokens in the pool are or will be worth $1 and allow them to be traded perfectly 1:1 with each other as long as the balance of tokens remains in an acceptable range. It may sound outlandish but it seems to make sense.

First, a drawback. This is not a 24/7 pool (or at least not until there's a ton of liquidity). There will be many scenarios in which some tokens in the pool cannot be added or cannot be removed. Let's say DAI is in a pool with the bounds 20%/45%. If enough people swap for DAI that its balance reaches 20% of the pool, DAI will no longer be purchaseable in the market or available for single-asset liquidity removal.

Now the upside. We can offer a ton of liquidity for arbitrage against deviations in the pegs of stablecoins. We make no effort at pricing; it's $1 for $1. Any time its not $1 for $1 somewhere else, a big chunk of the pool should get arb'd. The hypothesis is that this should result in high fee accrual per unit liquidity.

We also get to strictly define exposure to each asset in the pool. You know exactly what range the pool will remain in. This makes this model safer in a major depeg scenario than one that prices. In those cases, LPs end up with only the depegged asset; in this case, its only the upper bound for that token.

There's also some pretty massive gas savings. Swaps should be ~50% less expensive than alternatives, liquidity adds/removes ~75% less. Money saved is money earned.