ARRANGE Research Foundations
How replicating portfolios and RMMs inform ARRANGE's economic architecture.
#Why RMMs matter
RMMs provide a rigorous route from payoff function to market-making behavior. That connects ARRANGE's covered-call geometry to reserve design, arbitrage and measurable replication error.
- Payoff-specific reserve design.
- Arbitrage as inventory transition.
- Composable claims on replicating reserves.
- Explicit assumptions and failure bounds.
#Research questions
| Area | Question |
|---|---|
| Replication | Which construction best preserves the covered-call payoff? |
| Liquidity | How should LP inventory and user exposure remain separated? |
| Data | Which values govern execution, risk checks and terminal observation? |
| Corporate actions | How should multiplier, strike and notional transform together? |
| Adversarial behavior | How do gaps, MEV and delayed arbitrage change error? |
#Research lineage
ARRANGE draws on Primitive and RMM research; it does not claim to operate Primitive contracts or inherit their deployment or security properties.
- Replicating Market Makers
Angeris, Evans and Chitra's primary paper on constructing CFMM trading functions from target payoff functions.
- Replicating Portfolios: Constructing Permissionless Derivatives
Primitive research describing RMM-01 and onchain structured-product constructions.
- Primitive rmms-py
Open-source Python simulation toolkit for covered-call RMM behavior, arbitrage and fee experiments.
- Primitive Portfolio
Open-source automated market-making protocol repository and a useful part of the research lineage; it is not an ARRANGE dependency or deployment.