[Ready] [GF: Phase 1 Proposal Cycle 6] Kromatika

Thanks for the info.
I see you have started this initiative a month ago with $50. Your ask is for +/- $30,000 to test an unproven marketing strategy leaves me with concerns and more questions.

Unfortunately I feel this could have been better defined with-in the proposal.
Thanks again

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Thanks for the feedback; Please note this is only a third-party tool for hosting competitions/bounties, not a full marketing strategy. It is a tool that many are using it for competitions/bounties so it is not an unproven strategy. some of top daos are using it.

Unfortunately, not sure if a full detailed marketing strategy can be made in advance and describe in a details within the proposal. We added in the proposal how the OP incentives will be used as bulletpoints, what is the intention of the incentives, the type of incentives (educational, content writing, research) etc.

Usually, a detailed and exact marketing strategy with exact execution is building progressively up over time, but please correct us if we are wrong and point us out to a detailed marketing grant strategy in order to improve ourselves.

Thank you

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You must have misread, I didn’t ask for a fully detailed marketing strategy…?
All I meant is it could be better defined eg… this is the first time you have mentioned public bounty and Dework, this could have been included within your proposal. The only example on the proposal is for youtube content creators, So it requires some assumptions to be made to fill in the gaps in how you will run this initiative.
No point in addressing this now as your proposal is already up for voting.
Good luck

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I am going to vote against committee A’s recommendation here.

The reason is I really don’t like seeing the distribution of 20% to marketing and referrals.
This number should have been much smaller or better yet not existing at all.

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repasting Aristokrates’ thoughtful response to our review in this thread so readers can have proper context


First thank you for reviewing Kromatika proposal. Based on what is written we see that you have spent a lot of time reviewing how the Kromatika protocol works internally and we are really glad about that, so we can explain ti in details how it works.

Please find our initial feedback below.
We still believe that our feedback will not change the bias intention of this review and at least it should have been provided a lot earlier (since Kromatika proposal was created 6 weeks ago).
We believed this review is on the edge of rough review and not an objective review.
However, we are here to discuss it with cool heads, all that for providing more insight and transparency to the OP delegates and community that we are all part of it

Start

This actually is on the edge of FUDing saying team likely have multiple wallets doing limit orders without any support.

Fees charged correspondent to the gas needed to pay for filling the limit orders;
the Optimism gas fees are lower, so the fees are 0.1$ per limit order.

This is also a dump assumption without any support. The keepers pay the gas fees for filling limit orders and get KROM as compensation in the same $ value. Since gas fees are low on Optimism, we dont see a sell pressure from keepers.
If a fee for filling limit order costs 0.1$ order limit order, it would take 10.000 filled limit order to even get to 1000$ fees. that confirm the no sell pressure coming from the Keepers.

This actually will drive adoption and more users to it, since more users will be inclined to use limit order more often. Please note that limit orders are UniswapV3 position, so by placing limit orders on Kromatika, users are placing liquidity on UniswapV3 and increase the liquidity depth on Uniswap pairs.
This benefits the UniswapV3 liquidity depth for any trading pair, which means it benefit the entire Optimism ecosystem and one of the DEX protocols with higher volume there, reducing the price slippage on Uniswap as well.

Gasless trading means users will DONT need to pay any ETH gas when performing swap via Kromatika. Since Kromatika is a DEX aggregator, it pulls liquidity from different liquidity sources.
At the end, this feature benefit the END users, since they are the ones that can do swaps without paying ETH gas at all == FREE ETHLESS swaps with low price slippage.

The gasless mode will work on Kromatika as well without subsidising with $OP (when the gas subsidising period is over), however, the gas fees are then charged from the output amount from the swap.

We are really glad that we have the chance to explain our proposal in depth. Please let us know if we can clarify other aspects of it.

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Vote Abstain

Since there is no official committee recommendation for this and I did not have time to review thoroughly enough to provide an independent assessment I abstained here. Defi shadow committee B recommendation was however very helpful in my decision to abstain.

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FYI, There is also an official DeFi committee recommendation for this proposal.
Please refer it below.

All official DeFi A Commitee reviews for Cycle 6 can be found here:

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Thank you for the feedback @jrocki.eth

Just fyi, the official Defi Committee A voted yes.

The shadow committees are unofficial.

Thank you for your participation though :slight_smile:

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Oh no! My mistake. I don’t know how I missed that recommendation. My apologies!

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The PoolCollective voted yes, following the committee’s recommendation.

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No problem fam! All is good :slight_smile: Cheers!!

Thank you @Tjark :slight_smile:

Appreciate your support.

Snapshot vote - passed

@Kromatika can you provide a Telegram handle or other contact method so the Optimism team can get in touch about paying out this grant! Feel free to comment on this thread, DM, or email palash@optimism.io

Dear Delegates,

As the Kromatika developers are greasing their elbows and getting the work done to deliver various aspects of this grant, we have a few suggestions that we believe will benefit the larger Optimism community.

We would like to share these here and we invite your feedback/suggestions.

1/ Liquidity Mining Program

We saw Uniswap use liquidity protocols such as DefiEdge, 0xPlasma, Gamma, Arrakis etc and we think this is the best way to use provide optimized liquidity mining incentives to the Optimism community as opposed to our first thought of doing it in-house.

Our first two choices for liquidity mining distribution are DefiEdge and 0xPlasma. They provide a very efficient and optimized service and we cannot better that service if we decide to do it in-house simply because Kromatika specializes in providing innovative DEX services and not liquidity mining per se.
These liquidity mining protocols have a good track record and we feel it is wise to utilize their expertise because they specialize in it.

The result → More new users will be attracted to actively engage on the Optimism network.

We have been in talks and ready to deploy once we get your stamp of approval.

2/ Gas Refund

So the initial idea was to maintain an $OP gas tank (smart contract that will refund for gas money). From there, the $OP will be transferred to the ones who pay for the txn (biconomy validators).
This means there are two separate gas tanks - one that holds $OP and the other which is the Biconomy gas tank (which will hold $ETH). Kromatika would initially fund the biconomy tank with ETH, and then transfer OP to the validator as they begin to cover gas charges.
After that initial funding by Kromatika in ETH, then the validators will have to top up the Biconomy gas tank with ETH as and when they receive OP from Kromatika.
As we worked out this model, it feels inefficient and lengthy in terms of time and resources spent because OP is not the gas payment token for Optimism network (unfortunately).

Here is a suggestion:
Usage of Kromatika’s limit orders aka FELO(fees earning limit orders). These limit orders are actually concentrated liquidity positions on Uniswap V3 pool at the desired tick range.
Using FELO for OP/ETH, we add liquidity to the pool in exchange for ETH. This ETH can then directly fund the biconomy gas tanks which the validators can then use to cover the users tx costs on swap.

We feel this will be an efficient means of delivering the gas refunds. There is no direct selling, since using FELO (Kromatika’s flagship limit orders) means $OP liquidity is being added to the Uniswap v3 pool at a specific tick range. This can be carried out on a periodic basis based on the delegates recommendation.

We would like to hear feedback on this topic please. :slight_smile: We are also open to hosting an AMA with the delegates to answer any questions on how this will benefit the Optimism community.


We are open to hear your recommendations and very eager to push the products out asap.

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Apologies for the incovenience.

Was editing and deleted this post.

Re-posted it : [Ready] [GF: Phase 1 Proposal Cycle 6] Kromatika - #58 by Kromatika

Hi @Kromatika , appreciate the update.

I don’t have a particular view on the first piece, but the second is effectively selling the OP for ETH and is in my view a nonstarter.

updated my view somewhat on the first. defi edge doesn’t have a particular strategy that’s employed, so i’m not sure how you’ve come to the conclusion that it’s the most efficient provider of this service. rather, defi edge offers a range of strategies managed by individuals external to defi edge.

0xplasma functions similarly but the only strategy i see there with over 6 figures of tvl is a usdc-usdt pool.

so how have you arrived at the conclusion that these are better approaches than univ3staker?

and supposing you do go this route, how would you vet managers? and how could you prove that the manager isn’t someone affiliated with you, who could simply exit the OP through active v3 management?

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