Profile of Kromatika in Optimism

Posts by Kromatika

• OP grants through Season 2: where has the OP gone? by Kromatika - No Role
  Posted on: Nov. 30, 2023, 4:02 p.m.
  Content: Dear delegates, badgeholders, and citizens, First of all, we appreciate the concerns raised regarding the allocation of the grant, and we understand the importance of transparency in such matters. After all that is what decentralization indirectly stands for so we welcome the questions and are open to discuss all POV’s on the matter. So here is Kromatika’s response to the raised points. 1 - Protocol-deposited liquidity - 90 K OP It’s essential to clarify that the decision to allocate 90 k liquidity was made in accordance with the established rules. We acknowledge that predicting the evolution of KROM-OP price ratio can be challenging, and our intention was to safeguard against potential downturns. We took measures to set up a pool and prevent arbitrage to the best of our ability. If it would have been done 1 - 1 , it means at that time that KROM price would have been way higher. This was a question raise by @jackanorak on discord: Screenshot 1540 × 725 65 . 9 KB We allocated 90 k OP based on the proposal submitted 18 months ago when 90 k OP were equivalent to 300 k KROM. However, at the time of creating the KROM/OP pool, the price of Krom was 1 OP = 51 . 08 Krom. If you attempted to create a pool with 300 k Krom and 90 k OP, the starting price set in the pool creation transaction would be 1 OP = 3 . 33 KROM, which is 16 times higher than the actual Krom price. This would lead to an immediate dump and depletion of OP from the pool. It had to be split into 2 add liquidity (not limit order) transactions to avoid that. First one: Create the pool with starting price 1 OP = 51 . 08 Krom, and add liquidity ( 5873 OP = 300 k Krom) OP Mainnet Transaction Hash (Txhash) Details | Optimism 2 Second one: Add the remaining 84126 OP, so that we are in line with the proposal ( 300 k Krom / 90 k OP) OP Mainnet Transaction Hash (Txhash) Details | Optimism 2 Hope this is clear now. 2 - Gasless swaps jackanorak: But several months after making this proposal, the team acknowledged they hadn’t really thought the system through. We understand the concerns regarding the execution of Gasless swaps and the apparent delay in its implementation. The delay is not due to oversight but rather a commitment to thoroughness. There’s also the need for a comprehensive audit before deployment, and we are currently in the final stages, with the audit report at 99 % completion. We extend an invitation for you to review the pre-signed audit report for transparency. While the HOP mechanism for gas fee reimbursement serves as a fallback option, we are actively addressing concerns related to user experience and adhering to the no-sale policy. Our design, currently in beta, aims to provide genuinely free and gasless swaps without compromising on these principles. It’s important to note that, given our current priorities, the delivery of this segment (free & gasless) is not our sole focus. From the start, our focus has been: 1 : create gasless (done) 2 : audit gasless (WIP) 3 : deploy gasless + offer free gasless swap Last but not least, at the time, gasless was also delayed due to optimism bedrock changes, which introduced gas estimation errors - which made popular libraries such as web 3 .js and ethers.js to make incorrect assumptions for gas on optimism. As a result, all txns submitted by the relayers were failing. The contracts are already deployed, but not in use. The team decided to pursue the topic once the smart contract security audit is done. We remain dedicated to its successful implementation in due course. 3 - Liquidity mining campaign on 0 xPlasma and Gamma jackanorak: Note that this program took place in the last month or two. There is substantial evidence of wallets with interaction with known team wallets capturing a major portion of this grant; if these wallets are indeed team-owned wallets, this may violate the self-dealing clause of the Code of Conduct due to the sheer proportion of the OP claimed by these wallets. I invite the team to explain this piece. As for your inquiry into the liquidity farming program and the potential concerns related to team-owned wallets participating in the program, we reply the following - The primary goal of this initiative is to enhance liquidity, providing users with an attractive yield and subsequently improving trading conditions and cost-effectiveness for traders. It’s important to note that liquidity has been contributed by a diverse range of participants, including community members and contributors from the DAO. All contributors are community members first. They have transitioned into contributors, some choosing to remain while others have left. When contributors, including ex-contributors, participate in the liquidity farming campaign, it is natural that their involvement can be linked to wallets associated with their contributions. To amplify: these are not treasury funds but individual user wallets who are KROM holders. Also, as for the percentages mentioned, the level of incentive captured depends on what is in the pool. If you bring 5 k USD and there is 50 k in the pool, you will get 10 % of the rewards which seems huge. However, if that same campaign had 500 k in the pool, you only get 1 %. You can’t define upfront what would be the share of the incentives you will get – that applies for all staking / liquidity farming campaigns. It all depends on a holder’s behavior and participation. Lastly, implementing a campaign that explicitly excludes anyone who has ever contributed to Kromatika seems impractical and counterintuitive to the inclusive nature of community participation. There is currently no specific clause preventing contributors, past or present, from participating in the liquidity mining campaign as individuals. 4 - Limit order bonuses jackanorak: You can see a massive spike in limit orders, from 0 - 2 limit orders per day to a peak of 90 in a day. This coincides almost 1 : 1 with the incentive program associated with these limit orders. Once the incentives are over, so are the limit orders. There is little evidence of any organic takeup as a result of this program. Here is a chart showing limit order usage. (red = optimism, blue = arbitrum, green = mainnet) Screenshot 955 × 865 153 KB Here is another response we got in the optimism discord : Screenshot 11099 × 886 58 . 7 KB We acknowledge the observation regarding the spike in limit orders coinciding with the incentive program for (early) adopters of FELO. It’s important to clarify that community rewards are designed to attract and onboard users to the system, serving as a means to encourage initial engagement with the dapp rather than a speculative airdrop. The reward program was announced well in advance, aligning with the grant timeline. We made concerted efforts to publicize this program through multiple announcements and marketing channels (X, Medium, Discord,…) to ensure widespread awareness. While assessing the organic take-up of the program, it’s essential to consider that community rewards aim to create an initial surge in usage. An analogy can be drawn to couponing, where the distribution of coupons is meant to attract customers to a store. Once the coupon is used and the individual has experienced the offering, it’s their decision to revisit or not. In a similar vein, a spike in usage during the incentive period is a logical outcome, and the subsequent decline aligns with the natural progression of user behavior. Also, there are still limit orders being created on Optimism. It has only slowed down. As you see, arbitrum and mainnet orders are also rising but slowly. An interesting metric we tracked sometime back is that more than 50 % of first time FELO users become returning users. This shows a market fit for sure! (FELO = fees earning limit orders) It is our flagship product and we are proud of it. Being the first DEX to implement limit orders on Optimism, and perhaps one of the very few (or perhaps the only one?) that has automated the powerful UniV 3 tech for limit orders. Users have the following benefits: zero price slippage zero swap fees zero bot attacks/mev front running earn LP fees (user earns an average 1 - 9 % in fees on top of their fulfilled limit orders) The only fee is a service fee in KROM (dependent on network gas price) that is used to pay out the Keeper contracts we have deployed for limit orders. To promote usage of this innovate product on Optimism and clearly understanding the market fit, is why we incentivized it. We remain committed to refining our strategies and welcome constructive feedback to enhance the effectiveness of our community engagement initiatives. 5 - Marketing jackanorak: This portion of the grant was to my knowledge never completely scoped, and as far as I can tell there hasn’t been any formal disbursement to this end, although there was a deposit to a fresh Coinbase wallet early on in the program, so if this was a marketing piece I’d expect to have seen some output from it by now. Waiting on clarification here. Our approach to marketing expenditure is deliberate, given the nature of the industry and the importance of prudent financial management. In navigating the complexities of the industry, in other words, there are more so called “marketing cowboys” in web 3 , then any other industry, we prioritize efficiency in our use of OP tokens, a practice aimed at responsible resource management. We believe this is a rather positive mindset to have. We are quite aware of the no-sale policy and being a boot strapped project, we are diligent with marketing funds. We have utilized 4 k partially and another 1 . 5 k in the works. We will also have material posted by crypto research platform Revelo Intel once we decide what package suits the project the best in terms of reach and budget. We remain committed to providing clarity on our marketing strategy and expenditures. 6 - Affiliate referrals jackanorak: One year in, still hasn’t been laid out. While it’s true that there has been a delay in its implementation, it’s important to communicate that the initiation process has indeed commenced. Our team has been diligently focusing on addressing the aforementioned aspects and challenges, which have taken precedence in our development timeline. Despite the delay, we want to assure the community that the referral program is actively in development, and we are committed to bringing it to fruition. We understand the significance of the referral program in fostering community growth and engagement, and we appreciate your patience as we work towards delivering a robust and effective system which in turn will contribute to Optimism ecosystem growth and usage. 7 - Usage of the grant Thank you for providing a comprehensive overview, and we appreciate the opportunity to address these concerns. jackanorak: A year in, 175 k of the 300 k OP has been spent. In terms of fund utilization, it’s important to clarify that a total of 174 k OP has been utilized. To break it down: 90 k was allocated for liquidity, and it has been utilized as intended. 60 k for the gasless refund mechanism remains unutilized. 30 k for the liquidity campaign, of which 20 k has been used. 60 k for the limit order campaign has been utilized as intended. 30 k for affiliate referrals is yet to be initiated. 30 k for marketing has seen a partial utilization of 4 k+ 1 . 5 k We acknowledge the concerns raised regarding the enduring impact of certain programs, particularly the limit order campaign and the observed distribution of rewards. It’s essential to emphasize that these initiatives are part of a broader strategy, and their full impact may require time to manifest. In light of these concerns, we want to reiterate our commitment to transparency, responsiveness, and ongoing improvement. We recognize the importance of addressing these questions comprehensively, and we are open to further dialogue to ensure clarity and alignment with the expectations of our community. As we move forward, we remain dedicated to refining our strategies, learning from our experiences, and optimizing our initiatives to create lasting value for our community and stakeholders. We appreciate your engagement and constructive feedback, which are invaluable in shaping the future direction of our project. Welcoming all badge holders to digest all the info in response to the questions raised. Kromatika is an open source “fair launched” project with no VC backing. We are committed to providing the best DeFi tools for traders and growth of Optimism ecosystem.
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• Lefteris’ RPGF Impactful Opensource Project list by Kromatika - No Role
  Posted on: Nov. 29, 2023, 4:02 p.m.
  Content: Appreciate this initiative to be fair minded and just. Requesting you to consider Kromatika Finance for your list. It fits all three criteria: open source self funded, no VCs, no ICO rounds. products are definitely public goods. We were the first DEX to deploy limit orders when Optimism was in beta. Kromatika is perhaps one of the only DEXes that has automated Uniswap V 3 tech for its unique “fees earning” limit orders on Optimism network. It has been battletested throughout the bear market and has a user-return rate of upto 60 % ! Also, we offer a powerful swap aggregator that source quotes from 0 xProject, 1 inch, Sushiswap for best instant rates. FYI, last year Kromatika won a 300 k OP grant and have been further contributing to its growth and development. Additionally, there are no founders in Kromatika. We are a DAO. So yes, Kromatika is a public good - for the people and by the people. Here is our application: Optimism Agora 1 Thank you for your time :slight_smile:
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• Lefteris’ RPGF Impactful Opensource Project list by Kromatika - No Role
  Posted on: Nov. 29, 2023, 11:02 a.m.
  Content: Appreciate this initiative to be fair minded and just. Requesting you to consider Kromatika Finance for your list. It fits all three criteria: open source self funded, no VCs, no ICO rounds. products are definitely public goods. We were the first DEX to deploy limit orders when Optimism was in beta. Kromatika is perhaps one of the only DEXes that has automated Uniswap V 3 tech for its unique “fees earning” limit orders on Optimism network. It has been battletested throughout the bear market and has a user-return rate of upto 60 % ! Also, we offer a powerful swap aggregator that source quotes from 0 xProject, 1 inch, Sushiswap for best instant rates. FYI, last year Kromatika won a 300 k OP grant and have been further contributing to its growth and development. Additionally, there are no founders in Kromatika. We are a DAO. So yes, Kromatika is a public good - for the people and by the people. Here is our application: Optimism Agora 1 Thank you for your time :slight_smile:
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• Lefteris’ RPGF Impactful Opensource Project list by Kromatika - No Role
  Posted on: Nov. 29, 2023, 11:02 a.m.
  Content: Appreciate this initiative to be fair minded and just. Requesting you to consider Kromatika Finance for your list. It fits all three criteria: open source self funded, no VCs, no ICO rounds. products are definitely public goods. We were the first DEX to deploy limit orders when Optimism was in beta. Kromatika is perhaps one of the only DEXes that has automated Uniswap V 3 tech for its unique “fees earning” limit orders on Optimism network. It has been battletested throughout the bear market and has a user-return rate of upto 60 % ! Also, we offer a powerful swap aggregator that source quotes from 0 xProject, 1 inch, Sushiswap for best instant rates. FYI, last year Kromatika won a 300 k OP grant and have been further contributing to its growth and development. Additionally, there are no founders in Kromatika. We are a DAO. So yes, Kromatika is a public good - for the people and by the people. Here is our application: Optimism Agora Thank you for your time :slight_smile:
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• [Ready] [GF: Phase 1 Proposal Cycle 6] Kromatika by Kromatika - No Role
  Posted on: June 20, 2023, 2:14 p.m.
  Content: Here is the proposal to modify the liquidity mining solution from UniV 3 staker to liquidity mining protocols: app.charmverse.io CharmVerse 4 web 3 operations platform handling docs, tasks, bounties, proposals, and votes. @OPGovWatch @OPUser @katie
  Likes: 2 Replies: 0
  Likers: opuser, cryptoaya
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• [Ready] [GF: Phase 1 Proposal Cycle 6] Kromatika by Kromatika - No Role
  Posted on: May 8, 2023, 1:39 p.m.
  Content: Hi! Thank you for your kind words and your interest. Please join our discord and telegram community using the links in our Twitter 1 bio. Cheers!
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  Likers: cryptoaya
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• [Ready] [GF: Phase 1 Proposal Cycle 6] Kromatika by Kromatika - No Role
  Posted on: May 7, 2023, 1:57 p.m.
  Content: Dear Optimists, Kromatika has just deployed its trading pool (part of the grant proposal). Here is the tweet associated with the deployment: https://twitter.com/KromatikaFi/status/ 1654103857545490433 1 The LP transfers to dead wallet: Optimistic Ethereum L 2 Explorer Optimistic L 2 Transaction Hash (Txhash) Details | Optimism Optimistic L 2 detailed transaction info for txhash 0 xab 8 b 63 fa 09 feb 2 f 65 aba 223 fc 43 a 651 e 63 cab 40 d 262 ae 92899911439 c 2170 f 24 . The transaction status, block confirmation, gas fee, Ether (ETH), and token transfer are shown. Optimistic Ethereum L 2 Explorer Optimistic L 2 Transaction Hash (Txhash) Details | Optimism Optimistic L 2 detailed transaction info for txhash 0 x 1 c 45 df 68 bb 5 fa 174 a 90290072 ecf 10053047 b 70246 f 394 ffb 6 f 28850 d 56 d 2 af 2 . The transaction status, block confirmation, gas fee, Ether (ETH), and token transfer are shown. Is there any form that needs to be filled when parts of the grant are executed? thank you :slight_smile:
  Likes: 1 Replies: 0
  Likers: opuser
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• [Ready] [GF: Phase 1 Proposal Cycle 6] Kromatika by Kromatika - No Role
  Posted on: March 30, 2023, 2:25 a.m.
  Content: Thank you for taking time to pen down your thoughts. Appreciate your input. After receiving feedback here, we have decided to stick with the original proposal with regards to gas refunds. For liquidity mining, we will submit a proposal on the next cycle :slight_smile:
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  Likers: fractalvisions, luckymonkey, opuser
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• [Ready] [GF: Phase 1 Proposal Cycle 6] Kromatika by Kromatika - No Role
  Posted on: March 28, 2023, 3:11 p.m.
  Content: After discussing with @lavande , Kromatika intends to submit a new proposal as outlined in https://gov.optimism.io/t/code-of-conduct/ 5751 : 2 Mandatory (Violation 7 ): Must execute the grant in accordance with what is outlined in the approved grant proposal. Grant recipients that wish to change the use of the grant from what is outlined in the proposal must submit a new proposal requesting approval for the change. To do so, they must follow the grants process in place at the time. If the change is not approved, the recipient must execute the grant as outlined in the original proposal or return the portion of grant funding affected by the unapproved change. We will submit a new proposal with the intended amendments for the next Cycle which I presume happens in June. The other part of the grant will be executed in the meanwhile. The main idea behind this proposal is exclusively technical, to overcome the technical constraints imposed by the implementation, while providing the same benefit and feature for the community - liquidity mining. What I request is for @jackanorak and other delegates to pen down your questions/concerns regarding liquidity mining in response to this post and we will get them answered. Tagging a few delegates here: @OPUser @GFXlabs @Bogna @linda @katie
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  Likers: fractalvisions, luckymonkey
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• [Ready] [GF: Phase 1 Proposal Cycle 6] Kromatika by Kromatika - No Role
  Posted on: March 22, 2023, 3:09 p.m.
  Content: Kromatika intends to integrate the Defi Edge and 0 xPlasma offerings within Kromatika dApp/website. The community will be able to choose from either protocol.
  Likes: 1 Replies: 0
  Likers: fractalvisions
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