Despite being such a young industry, decentralized finance has quickly seen a lighting growth as real crypto enthusiasts found a way to truly live the world they’ve dreamed of, a decentralized universe where basically no banker could tell you to f-word off because you did not have the “financial stability” required to take a student loan, while monitoring and judging all your financial activity.
All of that, through Ethereum.
Nevertheless, as the network grew, more people onboarded, thus slowing the whole UX + making it more expensive, due to technical limitations (block-size, block-time, etc…).
Although being negative for the users (in appearance), it was the condition to make Ethereum a truly secured and decentralized network, where pretty much anyone could participate and help it run with basic hardware and an internet connection.
“To maximize the number of users who can run a node, we'll focus on regular consumer hardware.
See “The Limits to Blockchain Scalability” by Vitalik.
Nowadays, users are offered multiple solutions to access DeFi services such as swaps, lending, derivatives, or staking at way cheaper fees than on Ethereum, with faster transaction time. But at what cost?
Other layer 1 solutions (especially PoS ones) rather bet on UX than decentralization and security, to not give any name. Moreover, most of them had their initial token distribution process aimed towards quick financing thus allowing insiders, VCs, and other billion-dollar worth companies/individuals to benefit from it way more than the average crypto user.
This article is not about other L1s so I’ll try to be short, but please refer to the following documents and writings to know more about that specific debate which has set heat on CT (Crypto Twitter) and the whole “crypto sphere”.
Nevertheless, this has not stopped people from using Ethereum. Scaling solutions have been made (ex: Layer 2 Rollups). In late 2021, anyone can hop on a layer 2 and take profit from Ethereum security while paying significantly less on gas.
Anyway, I think you got the point from here. If not, feel free to read more about scaling solutions for Ethereum.
Links to Kromatika:
To understand Kromatika, you first have to understand Uniswap V3. Uniswap is the leading DEX and one of the biggest DeFI protocols that exist today. The V3 of Uniswap introduced many interesting and innovative features (multiple fee tiers, improved Uniswap Oracles…). But we’ll focus on one of them. Learn more here
Uniswap V3’s Range orders
Now that you know more about the concept of concentrated liquidity, understanding range orders should be easier.
Users only deposit 1 single asset instead of 2, at a price range of their choice. This price range has to be above the current market price.
Now you know more about concentrated liquidity and range orders.
But what does Kromatika bring to the table after all?
Basically, Kromatika does all the steps users have to do in Uniswap V3 range orders on their behalf. The protocol automates the process of removing the liquidity after your price range has been hit.
From a user’s perspective, the only interaction is to select a token and place a limit order on Kromatika. The rest is done by the protocol itself, reducing the steps by a lot.
How does it work?
Smart contracts alone can't trigger or initiate their own functions at arbitrary times or under arbitrary conditions. State change will only occur when a transaction is initiated by another account (such as user, oracle, or contract).
Chainlink Keepers provide users with a decentralized network of nodes that are incentivized to perform all registered jobs (or Upkeeps) without competing with each other.
When placing a limit order on Kromatika, you are placing a range order on Uniswap v3.
Kromatika uses Chainlink Keepers to monitor everyone’s position so that when a user’s target is hit, the amount deposited gets automatically swapped then sent to the user’s wallet.
Keepers will simply check 24/7 if your target price is reached or not. If it is, then they will remove your liquidity (which has already been swapped for the desired token), and send the intended swapped mount + swap fees directly to your wallet.
$KROM token is the token users pay as service fees to Kromatika. (They cover Chainlink keepers fees and network fees). This means $KROM has an intrinsic value, being a utility token. Service fees are also inverse proportional to the $KROM price, as Keepers fees and network fees do not grow (in the quantity of ETH).
What are the benefits of using Kromatika rather than other DEXes?
Who is behind Kromatika?
The core team is composed of three people, who are all developers.
Thank you for reading,