Introduction

In June 2017, Vitalik Buterin, the founder of DeFi forerunner, Ethereum, published an article on his website explaining a near-future possibility of “on-chain market makersO (also called automated market makers (AMM))” as a rival to centralized exchanges. AMMs did not look very feasible at first due to low liquidity problems prevalent in decentralized exchanges (DEXs); there had to be a way to encourage traders to pull resources together to form a large pool of resources that facilitated liquidity in AMMs. One of the possible ways of achieving this was through an incentivized liquidity provision model, also called liquidity mining in which liquidity providers are given portions of the fees generated in a liquidity pool.

Since Vitalik published the aforementioned article on on-chain market makers, different protocols like Uniswap, Bancor, and Curve Finance, have introduced diverse models to AMMs which have all shaped the future of the AMM protocols to attain great scalability status. Yet, there appear to be some persistent limitations to AMMs. For instance, there is the issue of impermanent loss and low capital efficiency which arise as a result of the high volatility of cryptocurrencies. Another problem is the high gas fees and poorly written and executed smart contracts which lead to outrageous slippages and partial order fulfillment. Qroniswap is coming to DeFi to fill in these loopholes by running protocols that eliminate the outrageous cost of participating in DeFi activities and creating an intuitive environment for achieving deep liquidity for DeFi investors and enthusiasts.