BrownFi AMM

BrownFi banner
BrownFi logo
BrownFi capital efficiency
BrownFi value proposition

Inspiration & problems

There are two fundamental AMM paradigms for volatile pairs:

Uniswap V2 is simple but low Capital Efficiency (CE).
Uniswap V3 (and Maverick, TraderJoe) has high CE but complicated UX for LPs.
Half of LPs on Uniswap V3 lose due to high IL. On the entire Ethereum, LPs have lost $766M for arbitrageurs since the Merge, according to https://sorellalabs.xyz/.
Finding an AMM model with high CE and simple UX for average LPs with arbitrage resistance will bring huge benefits for new ecosystems with limited capital and low liquidity.

What is BrownFi

BrownFi is building an innovative AMM based on oracle, offering high capital efficiency, flexible market making and simple UX, arbitrage resistance. The core concept of BrownFi AMM employs an elastic Parameterization of Limit Order-Book (PLOB) from a published research papers on IEEE Access, a notable scientific journal. In brief, the core function of BrownFi AMM is based on an invention of a NOVEL pricing mechanism, presented in this post.
Mathematically, we prove that the constant-product market making (CPMM) model xy=k of Uniswap V2 is a special case of BrownFi's elastic PLOB model.

Capital efficiency
Our simulation shows that BrownFi AMM offers capital efficiency as equivalent as Uniswap V3 (bin range +/- 2%) and 100X better Uniswap V2. A swap draws out 50% of ETH reserve but slippage (aka price impact) is 0.65% incredibly low. The same trade of 50% pool reserve on Uniswap V2 will imply a price impact 100%, i.e. the trade price will be doubled or halved.

BrownFi AMM: market position & USP

We fill the gap between Uniswap V2 and V3, offering key advantages with best fit to emerging L1, L2 ecosystems:

Flexible capital efficiency 1-10-100X better than Uniswap V2, thus, very low slippage for traders.
Resistant to arbitrage & sandwich attacks, hence better gains for LPs.
Simple LP management for average users.
One-sided LP add/remove at liquidity pool (not by zap in) BrownFi AMM market proposition

Accomplishments that we're proud of

BrownFi won the 1st prize DeFi trach at Openbuild-Starknet hackathon. BrownFi AMM was granted by Dfinity Foundation to develop a prototype on Motoko, and by Starknet Foundation to develop testnet on Cairo, grant from Metis.

EVM-testnet version on testnets (BNB Chain, Sonic, Sonenium L2, Unichain, BaseL1)
Testnet Aurora EVM on Near https://testnet.browndex.io/#/swap, select Aurora testnet.
Demo on Starknet-Sepolia testnet: more than 1000 users testing our AMM.
We just completed a contract audit for beta production on mainnet this November 2024.

What's next for BrownFi AMM

Nov & Dec 2024; launch beta production on mainnet, secure liquidity partners and grow users
Q1.2025: launch V2 with flexible market making and advanced LP management tools