We’ve really appreciated the interest and questions we’re getting from our small but fierce community about how our building is going, so we wanted to start sharing regular project updates. We are deep in build mode over here, which involves not just coding and UX but a whole lot of math.
Here’s what we’re working on right now.
Main exchange operations: Nailing down all the main operational components–data in, order matching and execution, and token flows.
Market-making algorithm: For any given market situation, market makers face an optimization problem. Because the Krypton trading mechanism is so new, we want to help market makers with this process, so we’re designing a market-making algorithm with one of our advisors, UCLA Economics professor Pierre-Olivier Weill.
We’re deep in the math on this now, and the next stage will be to translate the algorithm into code.
Order execution assistant: Krypton is unique because orders are executed as a continuous flow over time–meaning that there’s an optimal trading speed for a given transaction and market environment. We’ll provide suggested defaults for users to make this easier, but the optimal speed might change over time. With our order execution assistant, you can get help in monitoring that optimization as your order executes.
We’re building out the framework for this component of the exchange right now.
One of our investors, Arjun Das (venture partner at Palm Drive), just put out this memo about market design and Krypton’s approach to architecting the future of DeFi. As you might imagine, we agree with his conclusions about Krypton, but Arjun is in general an incredibly sophisticated thinker in our space. Highly recommend subscribing to his Substack and following him on Twitter.
Feedback and questions? Join our next AMA on Tuesday, January 3 at 9:30 am PST. Pop into our Discord to join.
Events: In January, Anna will be doing a fireside chat with Chainlink in San Diego about finance and decentralization, and we’re planning a couple more events in LA in the first quarter. We promise you’ll see Michael again once he comes up for air–he’s deep in the math at the moment.
Who’s going to ETHDenver? We’re trying to figure out if we should put together a small event for people who are curious about Krypton.
We’re also working on some other community-building activities that we think you guys will really enjoy, but we can’t share the details just yet.
Stay tuned! We’ll keep you posted here regularly. If you want to chat, we are keeping an eye on our Twitter even though we’re not hanging out there a whole lot, and you can also find us on Discord or Telegram.
We really appreciate all the support we’ve gotten for what we’re doing. This is the kind of endeavor that we strongly believe can form a foundation for financial infrastructure going forward, so we want to be very sure we’re getting it right.
We can’t wait to change the world with you.
Krypton is dedicated to the idea that functional markets are fair markets, where you can get the trade you want at a cost that makes sense. Our academic roots are the foundation of our novel approach to solving the challenges of building a decentralized financial system, and we’re proud to offer a truly novel approach to exchange architecture with the Krypton DEX.