Congratulations!!! Welcome to the Optimism Family! ! !
It’s really great to see active members like you in this community who are trying out protocols and working to make OP ecosystem better. DefiEdge is a asset management protocol built on top of Uniswap V3 that is decentralised, permissionless and non custodial, anyone can create and add funds in any strategy. As you correctly noticed there are several users that are managing their positions on DefiEdge, and there are even more managing it privately, there are also our in house strategies that we manage as we have our team of quants that create and manage the best ranges for protocols. Also our protocol is audited 6 times, and even includes in built farming contracts to incentivise strategies
I need to be clear on this – are you a representative of DefiEdge or Kromatika?
If the latter, I think the fact that you’d be using this as a platform to exercise your own strategies is problematic and opens the possibility for the kind of abuse even 100 audits wouldn’t pick up on, unless the kind of strategy you’d be describing is programmatic and open source, which would inherently be inefficient and self-defeating as an LP strategy, going back to the question of why you would use this solution and not something like Arrakis.
If DeFi Edge, i think there’s an opportunity here, but i think we need to see exactly what Kromatika intends to pursue as a strategy and a more complete explanation for why they choose this route.
@DangerExploit is from Defi Edge and is perhaps the best person to break down on why we chose Defi Edge over Arrakis.
do you intend to use defi edge’s proprietary liq management solutions or are you going to be using an outside manager? and how would the community be able to track which is being used?
and does kromatika or its principals have any existing relationship, financial or otherwise, with defi edge or 0xPlasma? It remains strange to me that you are choosing two solutions with little testing and whose primary differentiation (which is legitimate!) is that they platform anon managers
We have interviewed Arrakis, Gamma, xToken Terminal, Defi Edge, 0xPlasma. We did it because we saw Uniswap utilize their services. And out of all these platforms, we were impressed with the tech of Defi Edge and 0xPlasma the most.
Defi Edge have their own team to manage the strategy (where upto 20ranges can be created as opposed to one range in Arrakis), rebalance the pool which minimizes slippage and the APY is impressive.
Same with 0xPlasma’s product called Quadrat. The trading strategy here is automated if I am not mistaken.
Both of these protocols are non-custodial. Also, there is a 33% reduction/savings of gas fees. DefiEdge does not charge a management fee, whereas 0xPlasma has a management fee which will be discounted for Kromatika.
A lot more eyeballs will be exposed to the KROM-OP pool, which in turn will increase TVL. There will be cross marketing campaigns carried out during this period to push the word out.
Update: Just finished a call with Velodrome and considering to add them as a third liquidity mining protocol. So the 30k OP might be split between 3 platforms - 0xPlasma, Defi Edge, Velodrome (potentially).
Kromatika intends to integrate the Defi Edge and 0xPlasma offerings within Kromatika dApp/website. The community will be able to choose from either protocol.
Did you have such questions for Uniswap? Why did they choose DefiEdge?
Your tone seems to be condescending. My question is : why?
This is a wrong approach.
How did you come up with which Liquidity manager to choose from ?
Was there any governance proposal or voting taking place?
If not, who makes the decision? You mentioned that those liquidity managers were being used for Uniswap liquidity mining as well, but you forgot to mention that in that case the Uniswap community have made the final decision based on their governance proposal process, not Uniswap team, foundation or few individuals.
In your case, I can suggest to do your own governance proposal for your community choosing a LM (same as Uniswap) rather than making a biased decision within few.
This can also prevent behind-the-curtain agreements on which LM to choose. I see you already added Veldrome, probably because a Velodrome team representative jumped and argued (with all rights to do so) why you have chosen others (and maybe not velodrome).
I’ve made abundantly clear to the team that whether they choose to work with Velodrome has no bearing on the status of their grant (already granted) or any future grants.
My questions have been around why they have chosen 0xplasma and defi edge rather than other Uni v3 liquidity management solutions.
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.
Hey @Kromatika, Thank you for the tag, I might be branching out here in my thoughts but this is how I foresee gov to work. Open and transparent communication, you coming to us seeking feedback, keeping the communication channel open, inclusive and willingness to accept positive criticism. In past few days, there has been lot of negative, unnecessary noise around gov giving bad outlook to collective and optimism in general. Appreciate the team leading Kromatica proposal, you are doing an excellent job.
Coming back to proposal, No sale rule applies to all, there is no way around it. Personally, I am more interested in who is, at the end, receiving the grant token , you are not selling the grant token for personal gain, or to fund development work or to boost your native token.
Way I see it as exchange of grant token because of how sequencer is paying the fee on L1 but its going to users which is most important to me, after looking at last couple of incentive i have grown skepticism to swap incentives but you are only covering the fee which is not gameable. Open to feedback if I am missing something here.
As far as protocol of choice, if uniswap is utilizing their service i am happy to support Kromatika using the same service as well. We have seen huge increase in liquidity/transaction because of trust in a time tested protocol, AAVE grant is one example.
I dont have any additional queries and will leave the final judgement on your proposal to grant council. Appreciate your time and effort, this is how a grant proposal should be processed and reviewed.
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
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
The LP transfers to dead wallet:
Is there any form that needs to be filled when parts of the grant are executed?
Thanks for such a profound explanation of your project. I can see the bright side of Kromatika and it is a fantastic trading platform. I basically use a local trading platform in Turkey, named btcTurk. The reason I use it is the immediate deposit and withdrawal to the Turkish bank account and the support of the national bank.
Anyway, I want to do interaction with your brilliant trading dApp, as it robbed my attention.
I joined https://app.dework.xyz/kromatika-dao and hope I can be helpful. Good luck with your porject.
Thank you for your kind words and your interest.
Please join our discord and telegram community using the links in our Twitter bio.
Thanks. I will join. I am already following your twitter. Hope to see lots of amazing contents from you there.
Sounds good! I like this proposal
Here is the proposal to modify the liquidity mining solution from UniV3 staker to liquidity mining protocols:
Hi and thank you for your proposal. Can you please specify the grant amount in the proposal and how you would justify the size of your grant.