Kromatika Finance — An Overview
Saying @KromatikaFi (Kromatika DAO) is a DEX is true, but that is an oversimplification of the actual functions and peculiarities of the Kromatika finance DApp. Here’s a thread about some of those Kromatika DEX’s peculiarities that “give you an edge” over the users of other DEXes.
Some of the major challenges that have inhibited the widespread adoption of Web3 are its complexity, high gas fees in some cases and its accessibility. Kromatika is an innovative DEX that aims to make decentralized trading on Ethereum and its L2 chains easier. And how is it trying to do this? Read on.
Kromatika is changing the DEX game by bringing in four major features that distinguish it from other DEXes. I’ll talk more on those features:
- Fees Earning Limit Order (FELO)— The Limit Order function is mostly seen on CEXes because it is very tricky to implement in a truly decentralized way. A limit order is used to execute a trade at a desired price range without the trader having to constantly monitor the market. It also requires less gas fees than the regular Market Order function. While this function is available on some DEXes, most of them use a Quote method to implement this and sometimes the user who wants to sell (Maker) will have to wait a while even when the token is already trading at the desired price before another user (Taker) fills the order which happens most times when the Taker sees an arbitrage opportunity.
@KromatikaFi solves this by using a combo of Uniswap V3 Concentrated Liquidity and Smart contracts powered by Chainlink keepers. When a user creates an order, liquidity is added to the pool at the user’s target price and then the Chainlink keepers monitor the price continuously, once it gets to the desired target set by the user, the order is filled and then liquidity can be removed.
A great advantage this gives users is that whatever fees the added liquidity earns from the liquidity pool (usually about 1.5% and sometimes up to 10% of the order size) will be used to pay for the transaction fees and whatever is left of the earnings go to the user. Kromatika is also the only DEX that has the Limit order function implemented on the Optimism network.
- Metadex Swap Aggregator — Aggregators like Jupiter on Solana checks many liquidity pools whenever a swap is to be done and then gives the user the prices and sometimes depending on user preferences, it even makes the choice of the protocol to be used for the trade. This was a great leap when it started, but everything can be improved upon and Kromatika took it a step further by using an aggregator of aggregators to check through many aggregators like 1inch and 0xProject and the deepest liquidity pools to ensure that the very best price and trade routes are given to the user for every trade that is executed.
- Gasless Swap — Yes, gasless swap on a DEX. Remember Kromatika’s mission is to facilitate the move of users from Web2 to Web3. Many users use CEXes because they don’t need gas fees to swap from say $USDC to $KROM, but in Web3, gas is needed in $ETH or the chain’s native token before such a swap can be done and sometimes, the gas fees especially on the Ethereum mainnet can get exponentially high.
So in Web3, gas fees are needed, Not on Kromatika though as gasless (not feeless) trading is live on their DEX on the #Arbitrum and #Polygon networks and is already in the works for #Optimism and the #Ethereum mainnet soon. The gas fees are taken from the receiving or output token e.g. from $KROM in the instance above.
- Perpetual Platform — Leveraged trading is a very important part of Finance and cannot be neglected so, Kromatika created a perpetual trading platform that is loaded with benefits for the users especially in terms of Maker and Taker fees (remember, the cost challenge) which are a fraction of what other popular DEXes are offering. Also, there’s a possibility of gains been shared amongst users in the near future.
The Perp trading is live on Ethereum mainnet, Arbitrum and the BNB chain and it is far more advantageous to use that using a CEX for leveraged trading. Head over to their perp site to get started and remember to be cautious when trading with leverage.
To conclude, here’s an infographic comparing @KromatikaFi to CEXes and other DEXes, when you look closely, you’ll see that using Kromatika DEX is a no-brainer, it leaves the others in the dust. To learn more about them, check this link and discover the best DEX!
That’s all about this Kromatika Finance Overview. As my bio says, I am a new writer, please follow me, I’ll keep writing about anything and everything and one day, I might write about something that’ll interest you if this doesn’t. Also clap on this article and share. See you!
