[READY] [GF: Phase 1 Proposal ] Kromatika

Project Name: Kromatika

Author Name: Kacar

Number of OP tokens requested: 300.000

L2 Recipient Address: 0x05d235d8Ba95bfc457f9a11F64cf869f0f3f60F9

TVL : $966 059 worth of limit orders have been created on optimism before the OP snapshot.

Tier: 3

Optimism native: No

Kromatika Background:
Kromatika dApp first deployed its innovative limit order solution on the Optimism network on December 15, 2021, while Optimism was still in Beta. To this day, Kromatika is one of the few (if not the only) DEX protocols that implement automated Limit Orders and a Swap Aggregator on the Optimism network.

Kromatika utilises the advanced UniswapV3 liquidity and the efficiency of Chainlink Keepers to settle trades automatically as per the user’s pre-defined conditions. Kromatika has automated all the complex procedures and made it easy for DEX users to conduct limit trades. Now, users can trade without front-running BOTs, with no price slippage impact, no swap fees, and also earn a portion of LP rewards for providing liquidity on the trade. In other words, the trade target price defined by the user is precisely applied for execution without manipulation, no fees lost during the swap, and no BOTs will rob the users off their crypto during the trade.

Kromatika v2 benefits from an advanced MetaSwap Aggregator as well. This platform aggregates the liquidity from popular DEX aggregators and compares swap data across Uniswap, 0xProject, and 1inch. This allows users to get better market rates than they would get on a single DEX by optimising token pricing, swap fees, and slippage.

Kromatika’s mission is to make DEX trading simple, accessible, and profitable to every crypto user who believes in the decentralised value of blockchain technology.

Goal :

  1. Bring more users into the Optimism ecosystem via our Marketing Triade plan
  2. Increase TVL and daily transaction on Optimism via Kromatika
  3. Create new partnership collab with other projects to bring them into the Optimism ecosystem.

Optimism alignment :
Kromatika wants to help Optimism onboard new users and increase locked liquidity.

Proposal for token distribution :

How will the OP tokens be distributed?

We created a Triade Marketing Plan, each corner of this triangle boosts the other one, it’s a virtuous circle.

Influencer Marketing 50%

We’ll create a mass influencer marketing program to make the promotion of Kromatika on Optimism with a focus on 3 unique Optimism features:

  • 3 free swaps on Optimism network only
  • $OP airdrop for Liquidity Provider participant on the Optimism Blockchain
  • Liquidity providing and solo staking on Kromatika Finance

We will be selecting quality influencers for this campaign. As a platform, we do not work with “coin shillers” or pump-dump groups for promotion. We look for good educational content influencers who put out quality content. Our marketing team will ensure the selection of influencers is of the best quality and hence the educational youtube videos and twitter threads they produce will bring in quality users.
In addition, the influencers will also be equipped with a referral link, which we will build (see next point below), that can be a useful tool to further promote awareness of Kromatika and Optimism Network.
Kromatika is a fair launched project with no external funds, no VC and no ICO done. We are a fully minted project as well. This means our funds are limited, dependent on token prices, and have to be split between the various facets of running a well oiled machine - including dev work, hiring, team maintenance, all bills/cost related to the project.

We strongly believe that Kromatika is the solution to the current issues in the DEX space. But, it is quite difficult to do this without a dedicated awareness campaign especially because we don’t have any VCs or big names promoting our product. Hence the focus on marketing (including the building of the referral tool, see below) to raise awareness for Kromatika on the Optimism Network. The new users will be happy with the ease, automation and profitability using Kromatika protocol, and they will also experience the speed, low gas fees and versatility of Optimism Network. It is a win-win.

Referral Program 20%
Kromatika aims to build a referral program on Optimism first and make it exclusive for 2 months before setting it up on other blockchains. This idea was not part of our official roadmap, but since we are applying for a grant, it will enable us to dedicate funds (if we receive the grant) to pay salaries of the dev team in order to build this feature. We believe this program will help promote new user acquisition.
Once created, this Referral Program can be one of the tools that will gain traction among influencers that have a larger following and will help onboard new users to the Optimism Network via Kromatika.

Content creators monetize their audience with personal affiliation links for Coinbase, Bybit, Binance. etc. No one has monetized their audience via DEX affiliation yet. The goal is to change this trend and witness a “Kromatika affiliate link, on Optimism” under Youtube Influencer Videos, Twitter bio links, and blogs.

Liquidity Providing AirDrop 20%

Increasing TVL is Kromatika’s main goal and the $OP token presents a wonderful opportunity to attract new users and bring more on-chain liquidity.
We are going to reward the users who provide bridge liquidity ( $OP & $KROM ), only on the Optimism Blockchain.

Staking rewards :

Kromatika will also create a limited time staking rewards for users who stake :

  • Stake $OP earn $OP
  • Stake $KROM earn $OP

Early users Airdrop 10%

A small portion of grant will be used to reward the early Optimism users of Kromatika.This will be one more reason for continued usage of Kromatika on Optimism as it will be viewed by early users as a loyalty reward.

How will this distribution incentivize usage and liquidity on Optimism?

During the initial phase of the distribution, by temporarily giving 3 free swap fees, using our unique limit order platform, trading on Kromatika becomes more attractive. The users will benefit from an even smaller fee because Kromatika has no swap fees.

Why will the incentivized users and liquidity remain after incentives dry up?

Once the new users onboard, they will stay because of the security (decentralized), benefits (Kromatika trading platform benefits), and the network efficiency/speed (Optimism) that enables all of this to happen. Our real mission is to make DEX trading simple, accessible and affordable. DEX trading does not have to be a ridiculously costly affair, and the users will discover this reality via Kromatika and will continue to stay with Kromatika and Optimism.

As a Kromatika user, you will discover that:

  • You are not impacted by price slippage, or swap fees or bot attacks. (so more value for your crypto, no need to sacrifice it for bots/slippage)
  • You do not pay needless fees, instead you earn LP fees. (again more returns on your trade)
  • You do not need liquidity for both Token A and Token B, only liquidity for the token you want to buy or sell.
  • No order delays, but quick execution and fully automated because our limit orders are implemented as liquidity provision around the target price. When your target price is reached, your trade is executed automatically, and your liquidity is pulled out, again automatically. You don’t need to stare at your screen or worry about your orders being “un-filled” ever again.

This is fundamentally different from limit orders (range orders) that already exist in the DEX space which are prone to bot attacks, slippage, swap fees and also delays in the orders filled even if it is trading at target price.

Wouldn’t you be happy if as a DEX user you were given these advantages that exist in traditional finance and CEX? Why pay more on other DEX, when you can earn more with a “set and forget” type of automation via Kromatika?

Now for the users who prefer only swap trades, Kromatika is an “aggregator of aggregators”. The smart program scans the popular 1inch, Uniswap, and 0xProject for the best value for your swap trade in an instant.
You will never need to scan multiple DEXs for your instant swaps because Kromatika does this heavy lifting for you.
Additionally, Kromatika intends to provide BOT protection for swaps as well (just like our limit orders) in the near future.

With the above advantages, it is no doubt that the users will stay once the incentives dry up, because Kromatika offers a solution in the DEX space that is unmatched by others.

Over what period of time will the tokens be distributed?

The duration of the distribution phase is impossible to predict due to the variable nature of the distribution method.

9 Likes

This is a good proposal, especially because this project chose to launch on Optimism in its Beta Stage last November.
Kromatika Finance has an interesting and useful solution to DEX trading via its limit orders.
I think the grant could help Kromatika raise awareness of its platform and bring more users onboard the Optimism Network.

3 Likes

I’m a big fan of Krom and have been using it a while. A nicely balanced and considered proposal that allocates OP in the right places, from my perspective. Fully support

4 Likes

Hey Guys, thank you for your first draft.

here are couple on initial thoughts:-

you have referral reward under influencer marketing and under referral program too , how are they different ? I get that in one you are talking about content creation and in other its about individual referral, correct? But arent they suppose to fall under on category ?

On youtube/twitter promotion topic, how are you planning to decide who will get how many rewards. For example, one user might right in depth review of the platform and other might just say “Krom is the best dex”.

You are giving 20% as swap(from the pie-chart) reward and you are also mentioning 3 free swap under your 50% allocation. Are they same ?

A:- influencer Marketing 50%
1. content creator
2. OP reward on trade volume
3. 3 free swap

B:- Referral Program 20%
How is this different from above (A.1) ?

C:- Liquidity Providing AirDrop 20%
1. staking

D:- Early users Airdrop 10%

where is the 20%(Swap Reward) you are showing in pie-chart, is that a typo ?

I have also shared almost same text on discord, pasting here for more input from community.

4 Likes

I am big fan of krom and use it for while, very smooth and saving a lot !

3 Likes

Krom has consistently had the top 30 trading volume (weth pair) on uniswap and I believe it is a gem.

2 Likes

Hey, thanks for the feedback.
Here are the answers from your questions

On youtube/twitter promotion topic, how are you planning to decide who will get how many rewards. For example, one user might write in depth review of the platform and other might just say “Krom is the best dex”.
→ We have always believed in educational content to create awareness in this space. Even on a regular basis we turn down plenty of “shill” influencers, and choose only educational type influencers. Our marketing team will judge the user content to filter good-quality reviews. Our focus is Kromatika on the Optimism Network, and not just Kromatika as a DEX.

where is the 20%(Swap Reward) you are showing in pie-chart, is that a typo ?
→ Yes it was, I’ve taken care of it. Thank you for pointing it out.

You are giving 20% as swap(from the pie-chart) reward and you are also mentioning 3 free swap under your 50% allocation. Are they same ?
→ There was a typo on the pie-chart. The correct form is: 20% of the Grant Fund will be used to reward users who provide bridge liquidity ($OP or $KROM).

you have referral reward under influencer marketing and under referral program too , how are they different ? I get that in one you are talking about content creation and in other its about individual referral, correct? But arent they suppose to fall under on category ?
→ The 20% mentioned under Referral Program will be the cost spent to build this feature. This is something that we did not plan in our official roadmap but now since we may have additional funds via this grant, we can direct a portion of the fund towards building this feature.
The Referral Program is one of the tools for influencer marketing (apart from content creation etc). We envision that this referral program will gain traction with influencers that have a larger following and will help onboard new users to the Optimism Network via Kromatika.
One of our objectives with this referral program is that Kromatika on Optimism Network will be featured on popular blogs/vlogs/influencer tweets etc

5 Likes

This is a novel approach and worth supporting to see how well it works. I am particularly drawn to using the tokens for marketing campaigns to onboard new users. Those efforts could reach beyond the mercenaries and lead to increased adoption, particular if the focus is on educational content.

2 Likes

@Justin mate? You left me a reply holding one position, and then here you post the opposite position, and justify it via:

This is literally what 25% of my requested allocation is for?!?! Why the contradiction on my Proposal? Help me understand this, please, while my Proposal is still in Draft mode.
EDIT: Please respond to the request for clarification in the Summa Proposal thread, so we don’t unfairly take Kromatika’s thread off track. Cheers.

Kind regards,
Axel

1 Like

Hi @Axel_T, I responded to this comment on your Phase 1 proposal page. Cheers.

1 Like

Thank you, so can i say that 70% is towards marketing(i am also counting 20% that you will use to build this feature), 20% to LPer and 10% early users ?

2 Likes

How does staking KROM and paying OP to people to dump a good idea?

Or using OP to pay influencers to dump onto the market a good idea?

Everything here, from the airdrop to marketing and LPing is a bad move for OP token price.

Yes you could say that. We decided to spend upto 70% (including 20% build cost) on marketing because we want to help onboard new users to Optimism using Kromatika.

Our real mission is to make DEX trading simple, accessible and affordable. We want to help transition CEX traders to DEX traders.
The crowds will come in once they discover that DEX trading does not have to be a ridiculously costly affair.
And, we believe that Kromatika is the solution to the current issues in the DEX space.

But, it is quite difficult to do this without a dedicated awareness campaign especially because we don’t have any VCs or big names promoting our product. Hence the focus on marketing (including the building of the referral tool).

Once the new users onboard, they will stay because of the security (decentralized), benefits (Kromatika trading platform benefits), and the network efficiency/speed (Optimism) that enables all of this to happen.

1 Like

Thank you, what you have said make sense. One last question, I promise, will you be keeping a ledger of your fund distribution and willing to share with OP team when asked for it? Reason being, I think , its a unique experiment and I want to support this but I also want to see the flow of token and its impact on users.

It would be great if you could share with all of us but I think this wont be possible because of privacy reason. What you think ?

Am I understanding it correctly that you are asking for OP tokens to pay to influencers to market your product in optimism? And then some of it on a referral program?

The way tokens are used is described and can be followed on-chain. The Provided address in the grant is a gnosis safe wallet on OP having the same signers as the team wallet.

1 Like

This is the one thing that we have no control over.
We are hoping the users hold the OP token, but ultimately, it is a grant paid in OP tokens that must be put to use.
We have tried our best to bring about good value for both Optimism and Kromatika in the long run.
If you do have a better idea, we’d be open to hear it though.

2 Likes

This makes sense. Thank you for sharing these details.

Hi, thank you for your question.

The only payment an influencer gets is to promote our “Optimism only offers”:
a) three free swaps on Optimism
b) $OP airdrop for Liquidity Provider participant on the Optimism Blockchain
c) Liquidity providing and solo staking on kromatika finance

Additionally, we will be vetting the influencers to ensure they are not coin shillers but rather have some good educational content. That way there is quality and we are not throwing $OP tokens into the wind.

The 20% for referral program is for the development of the referral program. This idea was not part of our official roadmap, but since we are applying for a grant, it will enable us to dedicate funds (if we receive the grant) to pay salaries of the dev team in order to build this feature. We believe this program will help promote new user acquisition.

1 Like

Based on the discussion going on and clarification made, as an OP holder and delegate with more than 0.0005% of voting power ( 0xdbaabc182e5fcebf216c353a3ebe32cdb7390094 ), I support his Proposal.

4 Likes