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Ink Chain DeFi Ecosystem: The Kraken L2 Powering the Next Wave of DeFi

Otomate TeamFebruary 10, 20254 min read
ink chainDeFiecosystemKrakenL2

Ink Chain is one of the most exciting Layer 2 blockchains in crypto right now. Built by Kraken — one of the oldest and most trusted exchanges — Ink is quietly building a DeFi ecosystem that combines institutional credibility with permissionless innovation.

Why Ink Matters

There are dozens of L2s. What makes Ink different?

Kraken's Backing

Kraken has operated since 2011, making it one of the longest-running crypto exchanges. Unlike many L2s backed by venture capital and promises, Ink has the resources and reputation of a publicly traded company behind it.

OP Stack Foundation

Ink is built on the OP Stack — the same technology powering Optimism, Base (Coinbase), and other major L2s. This means:

  • Battle-tested infrastructure
  • Ethereum-level security
  • Interoperability with other OP chains (Superchain)
  • Access to a growing developer ecosystem

Speed and Cost

  • Sub-second block times
  • Transaction costs under $0.01
  • High throughput for DeFi applications

Key Protocols on Ink

Nado Protocol — Perpetual Trading

Nado is Ink's native perpetual futures exchange. It offers:

  • On-chain order book with deep liquidity
  • Up to 20x leverage on major pairs (BTC, ETH, SOL)
  • Subaccount system for isolated margin
  • Builder fee system for integrated applications

Otomate uses Nado as its execution layer for all perpetual trading strategies.

Velodrome — DEX

Velodrome brought its proven AMM model to Ink, providing:

  • Token swaps with concentrated liquidity
  • Yield farming opportunities
  • Vote-escrowed tokenomics

InkySwap — Community DEX

A native Ink DEX focused on the community, offering swaps and liquidity provision for the growing token ecosystem on Ink.

0x Protocol — DEX Aggregation

0x Swap API aggregates liquidity across multiple Ink DEXes, finding the best prices for token swaps. Otomate uses 0x for its spot swap feature.

What You Can Do on Ink Today

Perpetual Trading

Trade BTC, ETH, SOL, and other assets with leverage. Non-custodial, on-chain, with transparent order execution.

Spot Swapping

Swap tokens directly on Ink through integrated DEXes. Discover new tokens, check charts, and trade — all from one interface.

Copy Trading

Copy the trades of top Hyperliquid traders, automatically replicated on Nado via Otomate. Non-custodial and transparent.

Automated Strategies

Run market making, funding rate farming, and custom AI-built strategies on Ink — all without writing code.

Earning Opportunities

  • Provide liquidity on Velodrome/InkySwap
  • Farm funding rates through delta neutral strategies
  • Earn from bid-ask spreads via market making
  • Accumulate points and incentives from protocols

The Ink Ecosystem Advantage

Composability

Because Ink is EVM-compatible, protocols can build on top of each other. Otomate combines Nado (perps), 0x (swaps), and its own automation layer into a unified experience. This composability is what makes DeFi powerful.

Bridge Access

Getting funds to Ink is straightforward:

  • Bridge ETH from Ethereum mainnet via the official Ink Bridge
  • Bridge USDT0/USDC from other chains
  • Coming soon: direct fiat on-ramp via Kraken integration

Developer-Friendly

Ink supports all standard Ethereum development tools:

  • Hardhat, Foundry, Remix
  • Standard RPC endpoints
  • Block explorer with verified contracts

Getting Started on Ink

  1. Add Ink to your wallet (Chain ID: 57073)
  2. Bridge funds from Ethereum or another chain
  3. Connect to Otomate and start trading or automating
  4. Explore the token ecosystem via the Explore page

The Road Ahead

Ink's roadmap includes:

  • Deeper Kraken exchange integration
  • Fiat on-ramps directly to Ink
  • Superchain interoperability with Base, Optimism, and others
  • Growing institutional adoption

Being early in an ecosystem backed by a major exchange has historically been rewarding. Base (Coinbase) saw explosive growth in DeFi activity. Ink has the same ingredients — institutional backing, proven technology, and growing protocol adoption.

The best time to explore Ink is now, while the ecosystem is young and opportunities are plentiful.

Ready to start copy trading?

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