Initial commit: Kompact context optimization proxy + benchmark suite

Multi-layer transparent HTTP proxy for LLM context optimization.
Reduces token usage 40-70% with zero information loss.

Transforms: TOON, JSON Crusher, Code/Log Compressor, Content Compressor
(TF-IDF extractive), Schema Optimizer (TF-IDF tool selection),
Observation Masker, Cache Aligner. Adaptive pipeline scaling.

Benchmark suite using context-bench with NIAH, answer recall,
effective ratio, and cost-of-pass metrics. Baselines: Headroom,
LLMLingua-2, truncation, JSON minification.

Co-Authored-By: Claude Opus 4.6 (1M context) <noreply@anthropic.com>

Author: npow

.github/workflows/ci.yml

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+name: CI
+
+on:
+  push:
+    branches: [main]
+  pull_request:
+    branches: [main]
+
+jobs:
+  test:
+    runs-on: ubuntu-latest
+    strategy:
+      matrix:
+        python-version: ["3.10", "3.12"]
+
+    steps:
+      - uses: actions/checkout@v4
+
+      - name: Install uv
+        uses: astral-sh/setup-uv@v4
+
+      - name: Set up Python ${{ matrix.python-version }}
+        run: uv python install ${{ matrix.python-version }}
+
+      - name: Install dependencies
+        run: uv sync --extra dev
+
+      - name: Lint
+        run: uv run ruff check src/ tests/
+
+      - name: Test
+        run: uv run pytest -v

.github/workflows/publish.yml

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+name: Publish to PyPI
+
+on:
+  release:
+    types: [published]
+
+permissions:
+  id-token: write
+
+jobs:
+  publish:
+    runs-on: ubuntu-latest
+    environment: pypi
+
+    steps:
+      - uses: actions/checkout@v4
+
+      - name: Install uv
+        uses: astral-sh/setup-uv@v4
+
+      - name: Set up Python
+        run: uv python install 3.12
+
+      - name: Build package
+        run: uv build
+
+      - name: Publish to PyPI
+        uses: pypa/gh-action-pypi-publish@release/v1

.gitignore

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+# Python
+__pycache__/
+*.py[cod]
+*$py.class
+*.egg-info/
+*.egg
+dist/
+build/
+.eggs/
+
+# Virtual environments
+.venv/
+venv/
+ENV/
+
+# IDE
+.idea/
+.vscode/
+*.swp
+*.swo
+*~
+.DS_Store
+
+# Testing
+.pytest_cache/
+.coverage
+htmlcov/
+.mypy_cache/
+.ruff_cache/
+
+# Benchmark reports (generated)
+benchmarks/reports/
+
+# HuggingFace cache (downloaded datasets)
+.cache/
+hub/
+
+# Environment
+.env
+.env.local
+
+# uv
+uv.lock

AGENTS.md

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+# AGENTS.md — Kompact Context Optimization Proxy
+
+## What is Kompact?
+
+A transparent proxy that optimizes LLM context through multi-layer transforms.
+Sits between agents (Claude Code, Cursor, etc.) and providers (Anthropic, OpenAI).
+
+## Architecture
+
+```
+Request → Proxy → [Layer 1: Schema] → [Layer 2: Content] → [Layer 3: History] → [Layer 4: Cache] → Provider
+```
+
+## Entry Points
+
+| What | Where | Notes |
+|------|-------|-------|
+| CLI | `src/kompact/__main__.py` | `kompact proxy --port 7878` |
+| Proxy server | `src/kompact/proxy/server.py` | FastAPI, intercepts API requests |
+| Transform pipeline | `src/kompact/transforms/pipeline.py` | Orchestrates all transforms |
+| Configuration | `src/kompact/config.py` | Pydantic settings |
+| Core types | `src/kompact/types.py` | Message, ToolOutput, TransformResult |
+
+## Transforms (each is independent, pure function)
+
+| Transform | File | Layer | Typical Savings |
+|-----------|------|-------|-----------------|
+| TOON format | `src/kompact/transforms/toon.py` | 2 (Content) | 30-60% on JSON arrays |
+| Observation masker | `src/kompact/transforms/observation_masker.py` | 3 (History) | 50% on old tool outputs |
+| Cache aligner | `src/kompact/transforms/cache_aligner.py` | 4 (Cache) | Enables provider caching |
+| JSON crusher | `src/kompact/transforms/json_crusher.py` | 2 (Content) | 40-80% on structured data |
+| Schema optimizer | `src/kompact/transforms/schema_optimizer.py` | 1 (Schema) | 50-90% on tool defs |
+| Code compressor | `src/kompact/transforms/code_compressor.py` | 2 (Content) | ~70% on code blocks |
+| Log compressor | `src/kompact/transforms/log_compressor.py` | 2 (Content) | 60-90% on log output |
+
+## Key Invariants
+
+1. **All transforms are pure functions**: `list[Message] → TransformResult`
+2. **No transform modifies user messages** — only assistant/tool/system content
+3. **Every transform tracks `tokens_saved`** via `TransformResult`
+4. **Transforms are composable** — pipeline runs them in sequence
+
+## Documentation
+
+| Doc | Path | Purpose |
+|-----|------|---------|
+| PRD | `docs/prd.md` | Product requirements |
+| SDD | `docs/sdd.md` | System design |
+| Architecture | `docs/architecture.md` | Layer details |
+| Benchmarks | `docs/benchmarks.md` | Evaluation strategy |
+| Quality | `docs/quality.md` | Quality grades per domain |
+| Research | `docs/research/` | SOTA survey, competitors, economics |
+
+## Testing
+
+```bash
+uv run pytest                           # All tests
+uv run pytest tests/test_toon.py        # Single transform
+uv run python benchmarks/compression_ratio.py  # Benchmarks
+```
+
+## Quick Start
+
+```bash
+uv sync
+uv run kompact proxy --port 7878
+# Then: ANTHROPIC_BASE_URL=http://localhost:7878 claude
+```

LICENSE

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+MIT License
+
+Copyright (c) 2025 Kompact Contributors
+
+Permission is hereby granted, free of charge, to any person obtaining a copy
+of this software and associated documentation files (the "Software"), to deal
+in the Software without restriction, including without limitation the rights
+to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+copies of the Software, and to permit persons to whom the Software is
+furnished to do so, subject to the following conditions:
+
+The above copyright notice and this permission notice shall be included in all
+copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
+SOFTWARE.

README.md

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+# Kompact
+
+[![CI](https://github.com/npow/kompact/actions/workflows/ci.yml/badge.svg)](https://github.com/npow/kompact/actions/workflows/ci.yml)
+[![PyPI](https://img.shields.io/pypi/v/kompact.svg)](https://pypi.org/project/kompact/)
+[![Python 3.10+](https://img.shields.io/badge/python-3.10%2B-blue.svg)](https://www.python.org/downloads/)
+
+Context compression proxy for LLM agents. Reduces token usage 40-70% with zero code changes.
+
+```bash
+uv run kompact proxy --port 7878
+export ANTHROPIC_BASE_URL=http://localhost:7878
+# That's it. Your agent now uses fewer tokens.
+```
+
+## Results
+
+Evaluated on [BFCL](https://gorilla.cs.berkeley.edu/) (1,431 real API schemas), the standard benchmark for tool-calling agents. End-to-end through Claude via [claude-relay](https://github.com/npow/claude-relay), scored with [context-bench](https://pypi.org/project/context-bench/).
+
+### Does compression hurt quality?
+
+Quality impact vs no compression (positive = better, negative = worse):
+
+| Model | Kompact | [Headroom](https://github.com/headroom-ai/headroom) | [LLMLingua-2](https://github.com/microsoft/LLMLingua) |
+|-------|--------:|--------:|---------:|
+| Haiku | **+4.3%** | +0.7% | -25.9% |
+| Sonnet | -3.9% | -3.5% | -20.6% |
+| Opus | -0.5% | -0.5% | -27.3% |
+
+Kompact **improves** quality on Haiku — compression removes noise from tool schemas, helping the model focus. On Sonnet/Opus, all compressors are within a few percent of baseline. LLMLingua-2 destroys tool schemas regardless of model.
+
+### How much does it save?
+
+Offline compression measured on 12,795 examples across 3 datasets:
+
+| Dataset | Examples | Kompact | Headroom | LLMLingua-2 |
+|---------|----------|--------:|---------:|------------:|
+| BFCL (tool schemas) | 1,431 | **55.3%** | ~0% | 55.4% |
+| Glaive (tool calling) | 3,959 | **56.6%** | ~0% | ~50% |
+| HotpotQA (prose QA) | 7,405 | 17.9% | ~0% | 49.9% |
+
+Headroom's SmartCrusher doesn't compress JSON — it's designed for prose. LLMLingua-2 compresses aggressively but destroys information (see quality table above).
+
+### What does that mean in dollars?
+
+For a team running 1,000 agentic requests/day with ~10K token contexts:
+
+| Model | Without Kompact | With Kompact | Monthly Savings |
+|-------|----------------:|-------------:|----------------:|
+| Sonnet ($3/M) | $900/mo | $405/mo | **$495/mo** |
+| Opus ($15/M) | $4,500/mo | $2,025/mo | **$2,475/mo** |
+| GPT-4o ($2.50/M) | $750/mo | $338/mo | **$412/mo** |
+
+Savings scale linearly. 10K requests/day = 10x the numbers above.
+
+## How it works
+
+Kompact is a transparent HTTP proxy. It intercepts LLM API requests, compresses the context, then forwards to the provider. No agent code changes needed.
+
+```
+        ┌──────────────────────────────────────────────┐
+        │           Kompact Proxy (:7878)              │
+        │                                              │
+Agent ─>│  1. Schema Optimizer    (TF-IDF selection)   │─> LLM Provider
+        │  2. Content Compressors (TOON, JSON, code)   │
+        │  3. Extractive Compress (TF-IDF sentences)   │
+        │  4. Observation Masker  (history mgmt)       │
+        │  5. Cache Aligner       (prefix caching)     │
+        │                                              │
+        └──────────────────────────────────────────────┘
+```
+
+8 transforms, each targeting a different content type. The pipeline adapts automatically — short contexts get light compression, long contexts get aggressive optimization. Sub-millisecond overhead.
+
+## Running benchmarks
+
+```bash
+# Offline compression (no LLM calls, measures compression + needle preservation)
+uv run python benchmarks/run_dataset_eval.py --dataset bfcl
+
+# End-to-end quality (sends through proxy chain, measures LLM answer quality)
+# Requires: claude-relay running on :8084, kompact on :7878
+uv run python benchmarks/run_e2e_eval.py --dataset bfcl --model haiku --workers 20
+```
+
+See [`benchmarks/README.md`](benchmarks/README.md) for full methodology.
+
+## Development
+
+```bash
+uv sync --extra dev
+uv run pytest          # 48 tests
+uv run ruff check src/ tests/
+```
+
+## License
+
+MIT