The rapid growth of DeFi opens up new investment opportunities, but complex processes do not allow them to be used for retail users. Automated trading infrastructure can eliminate this gap.
Decentralized finance (DeFi) is one of the most important options for using blockchain technology.
Despite the sharp decline, as a result of which the total blocked value (TVL) of DeFi amounted to about 20% of the peak value ($248.8 billion in November 2021 compared to $48.6 billion in April 2023), this trend continues and has the potential to recover in the coming years.
The main argument in favor of further growth of DeFi is the unsurpassed advantages of financial services built on decentralized infrastructures.
As DeFi develops, cryptocurrency holders gain access to a variety of opportunities to increase profitability.
For example, decentralized exchanges (DEX) reward liquidity providers (LP) with the commission received on their platforms. There are other investment options, such as lending, staking or profitable farming.
However, it is more difficult for retail investors to explore all these opportunities. To begin with, investing in digital assets is a risky undertaking due to their high volatility.
In addition, providing liquidity on most large DEX involves additional risks, such as non-permanent losses.
Non-permanent losses are a situation in which the value of tokens placed in liquidity pools turns out to be lower than if the tokens were simply stored.
This risk is inherent in most DEX using the Automatic Market Maker (AMM) model.
Thus, the conducted research showed that about half of the liquidity providers on Uniswap, the largest DEX trading volume, may eventually lose money due to non-permanent losses.
Access to systematic strategies levels the playing field
To get the most out of DeFi, cryptocurrency users need to apply sophisticated strategies and treat profitability as a professional asset management business, and not as a “get rich” scheme.
Professional fund managers have the best chance of winning DeFi, as they implement complex strategies using advanced financial engineering and quantitative models.
However, even such professionals may face difficulties, as DeFi asset management requires additional experience in chain logistics.
Without the help of blockchain developers, who will be able to individually connect each protocol on different chains, it will be difficult for quantum traders to scale their strategies and get potential profits.
Currently, there are not enough specialized platforms that provide such a trading infrastructure that promotes closer interaction between retail users of cryptocurrencies and professional digital asset managers.
As a result, users and investors often navigate the complex world of DeFi on their own, manually participating in profit-making schemes without the support of systematic strategies.
Due to the lack of a systematic approach, such a manual process can lead not to profit, but to losses.
This DeFi platform offers automated asset management
Range Protocol is a universal platform and ecosystem for managing assets on the chain.
It connects DeFi users with qualified storage managers who, using advanced quantitative strategies, make adjustments almost instantly depending on changing market conditions.
These managers create non-custodial portfolios adapted to various asset management strategies and the acceptable level of risk. This approach ensures the availability of system trading strategies while maintaining full user control over their funds.
In addition, professional fund managers who decide to use Range will receive benefits such as expanding the scope of activity, reducing costs and increasing profitability due to strategic leverage and interchangeable tokens of liquidity providers (LP) with higher utility.
Professionally managed vaults
Range’s first product is Concentrated Liquidity AMM Vaults, which are automated vaults that allow users to systematically place liquidity on DEX with concentrated liquidity, such as Uniswap V3, PancakeSwap V3 and QuickSwap V3.
These repositories increase LP profitability by optimizing liquidity ranges, quickly adapting to changing market conditions and timely rebalancing of liquidity (JIT).
Storage managers conduct back testing to determine favorable price ranges in which liquidity should be provided, which makes it possible to effectively use capital to provide liquidity and increase profitability.
Their quantitative models quickly adapt to volatile or trending markets, and the JIT liquidity rebalancing system allows you to adjust price ranges in real time, thereby maximizing profitability and minimizing rebalancing fees.
Vaults allow users to place their assets into individual strategies that match their risk preferences, while avoiding custodial risks.
Storage strategies are managed off-chain, which allows you to use extensive data for financial and engineering modeling.
Although calculations are performed off-chain, they are performed on-chain in real time, which allows you to quickly make adjustments in response to market changes.
Range Protocol plans to specifically build storage facilities for various segments of DeFi, including providing liquidity in concentrated liquid OMS, NFT Finance, liquid stacking and derivatives markets such as options and perpetual swaps.
Within each category, specific strategies are applied based on the liquidity of assets and the acceptable level of risk of the user.
The team behind Range Protocol has extensive market-making experience in more than 200 projects and over-the-counter trading operations. Quantitative research is one of the main elements of the platform’s functions, and the team plans to use its own research in Range Protocol strategies.
Range plans to further expand and integrate other DeFi segments. DEX liquidity management repositories are starting a broader ecosystem that includes non-functioning tokens (NFT), liquid stab tokens and derivatives.
Thanks to Range, the DeFi market now has a chain-based, non-custodial quantum trading infrastructure that offers active asset management and meets the expectations of both retail cryptocurrency users and specialized asset managers.