OlympusDAO launches 1-to-1 StableCoin exchange
The developers of OlympusDAO launched a swap exchange to convert StableCoins exactly with full equality without involving any up & down in the price curve.
At present, there are huge numbers of StableCoins available in the crypto market. And the main thing associated with stableCoins is the availability of the pairs. For example, if a user has USDT and want to trade with any XYZ coin but that coin is available against BUSD or USDC, then in that situation crypto trader needed to go through trade with StableCoin to StableCoin & that will result in the loss of a small fraction in the funds because of up & down in the price of StableCoins.
To overcome the problem in between the different StableCoins conversion rates, the developers working in the OlympusDAO launched a swap exchange for one to one StableCoins. This swap is currently in the experimental phase. The swap will not follow any kind of price curve & will facilitate a direct conversion.
On 26 October, OlympusDAO developers announced this project through Twitter
The programmers of this swap program described it as an “optimistic stablecoin swap protocol” designed to “abandon a pricing curve altogether.”
The designed protocol of the swap will use “Range Pools” to use the tokens to token conversation directly. Right now available StableCoins are DAI, LUSD, FRAX, USDC, USDT, and MIM.
The Developers of the project explained about its working and also asserted that the swap is in the experimental phase and is not audited so users in this initial stage should not take big risks. While users can try with that amount of tokens with which they afford to lose.
usemzeus, the developer at OlympusDAO, stated that there are several advantages of this swap over traditional market maker swaps for the StableCoins. And also asserted that through this swap users will get low gas fees and capital efficiency. Further added
“My expectation is that (at least early on) the pool swings from range extreme to range extremely as the pooled tokens fluctuate around the peg. This should produce heavy fee volume from arbitrage.”
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