Notice of Service Closure

Chromatic Protocol has strived to build an ideal protocol that overcomes the limitations seen in existing perp dexes and to make it accessible to a wide audience.

However, despite the team's earnest efforts, we have failed to secure the necessary funding to sustain the operation of the Chromatic Protocol. Despite multiple attempts to secure VC investment since last year, recent discussions on a potential deal fell through, leaving us unable to continue operating the protocol.

Subsequently, the team has explored various possibilities to keep the service running. However, with depleted funds and no prospect of future development support, the team has deemed it irresponsible to proceed with additional initiatives such as executing a series of events, including Random Box opening for CHRMA distribution. In the end, it was decided that ceasing the operation of the service at this point was the right course of action.

We sincerely thank and apologize to everyone who supported Chromatic Protocol by gathering as a community, participating in Zealy and Reward programs. It saddens us deeply to disappoint the expectations of the community members and to have to shut down the service.

All assets provided to Chromatic will be fully reclaimable, and transaction costs such as trade fees paid to obtain CHRMA on the mainnet will also be compensated to the maximum extent.

A. Withdrawal of Assets

The members’ assets currently held in Chromatic Protocol include:

• Account Deposit

• Position

• Liquidity

  • Regular Liquidity

  • Liquidity supplied through LP Boost (locked up for 8 weeks):

    • LP Boost A: Lockup release on 4/25, USDT-BTC/USD Crescendo Pool (Total 60,567.58 USDT)

    • LP Boost B: Lockup release on 5/08, USDT-BTC/USD Plateau Pool (Total 10,325.19 USDT)

Asset Retrieval Before Service Closure (Before 6/30)

The service closure date for Chromatic Protocol is 30th June. Those with assets in Chromatic are requested to retrieve their assets before then. Once the service is terminated, asset retrieval via Chromatic.finance user interface will no longer be possible.

Asset Retrieval After Service Closure (After 7/1)

Assets not retrieved after the service closure will be instructed for retrieval through Arbiscan transactions or other methods. However, as this method is difficult and complex, we recommend retrieving assets before 30th June.

Deprecations of Accounts, Markets, and Pools

To prevent further trading activity, new account creations, new positions, and liquidity supply will be disabled.

Account

• New account creation and deposit functions will be disabled immediately after this announcement.

• However, balance withdrawals will remain available thereafter.

Market Deprecation

• Two markets and their respective pools will be deprecated on 12th April (Friday).

• After market deprecation, new positions cannot be opened, but closing and claiming existing positions will still be possible.

Pool Deprecation

• Six pools will be deprecated on 12th April (Friday).

• After pool deprecation, liquidity supply will no longer be possible, but liquidity removal will still be available. (However, to mitigate the risk of withdrawal failure due to insufficient keeper fees, only the 'remove all' function will be provided.)

B. Compensation for Paid and Unpaid Activities

Trade Fee

• All Trade Fees paid to Chromatic for opening positions during Season 1 of Mainnet, to participate in Trade Reward program and earn CHRMA will be fully compensated.

• The Trade Fees paid by each wallet will be calculated and transferred back accordingly. (USDT transactions will be compensated in USDT, WETH transactions will be compensated in WETH.)

• This compensation covers all Trade Fees paid by members during Season 1 of the Mainnet, even including the 50% of Trade Fees passed on to liquidity (LP).

• The compensation is scheduled to be paid on 12th April .

LP Boost

• As liquidity supplied through LP Boost is subject to an 8-week lockup, interest equivalent to 10% annually of the amount deposited will be transferred to individual wallets.

• Compensation amount = Amount deposited * 10% * (8/52 weeks).

• The compensation is scheduled to be paid on 12th April.

Community Activities

• We sincerely appreciate the community members who have been actively engaged during this period, especially those who diligently performed social sharing on Zealy, greatly contributing to the project's marketing efforts.

• As Random Boxes become irrelevant due to CHRMA issuance not occurring, we plan to drop $3,000 in a Raffle format on Galxe instead. (Galxe Raffle: $60 * 50 wallets)

• Participation in the Raffle is open to Discord OG role holders.

• While this method may not be an appropriate form of compensation considering it can't differentiate between members who have contributed more and those who have contributed less, we hope for your understanding that this is the best option given our current circumstances.

• Participation in the Galxe Raffle will be possible from 12th April (Friday) to 17th April (Wednesday). The URL will be announced on Discord and Twitter next week.

• Raffle results will be announced on 17th April.

The Chromatic team is truly devastated and saddened to have to give up Chromatic Protocol at such an early stage of its development. We apologize sincerely once again for not being able to continue the project to its completion as envisioned. We are incredibly grateful for your belief in and support of Chromatic Protocol thus far.