Description
Chromatic Protocol positions itself as the first properly designed decentralized perpetual futures protocol, providing permissionless, trustless, and unopinionated building blocks that let DeFi participants create balanced two-sided markets exposed to oracle price feeds and trade futures using various strategies. The protocol separates index and settlement tokens, allowing a diverse array of futures markets to be established permissionally using oracle price feeds as the index and ERC-20 tokens as settlement, making it one of the most versatile decentralized futures protocols available. It implements predefined take-profit/stop-loss logic directly on smart contracts for trustless, automated payoff execution, mitigating delta risk for makers and reducing forced liquidations for takers. Its liquidity provision model partitions LPs into multiple bins with different trading fees, with an optimal fee dynamically determined by taker demand and maker liquidity supply, improving protocol sustainability. Chromatic offers an SDK, a JavaScript library for developers to interact with the protocol on Arbitrum, along with smart contracts designed to be low-level and non-upgradable, empowering developers to build decentralized perpetual futures platforms aligned with their own business and trading strategies.