Kwenta (KWENTA)

The primary decentralized exchange (DEX) in the Synthetix ecosystem.

Basics

• Based in:
• Started in / Announced on:
• Testnet release:
• Mainnet release:

History

• From their Independence announcement (15-6-2021):

"Kwenta is the successor to another Synth trading interface called Synthetix.Exchange. Although Synthetix.Exchange saw steady usage from early community members, as the DeFi space grew it became clear that it had a big problem: by using the same branding as Synthetix the protocol, Synthetix.Exchange was confusing people in the community into mislabelling Synthetix as a DEX or trading interface instead of a building block for DeFi infrastructure. For Synthetix to thrive as a “money lego” in the DeFi space, it became apparent that we would need to separate Synthetix.Exchange from the core protocol’s branding.

To solve this issue, Synthetix worked with the community to create Kwenta, a new interface optimized for zero slippage Synth trading that could offer users a massive advantage over the rest of the market. This separated the branding of the exchange away from Synthetix and created new possibilities for what Synth trading could look like.

Lo and behold, this strategy worked. There are currently four non-core contributor managed projects generating roughly 600 million USD in cumulative monthly volume for the Synthetix protocol. Additionally, there are several more projects joining the Synthetix ecosystem, including Thales, Lyra, and Saddle, that will leverage Synthetix liquidity to power a new era of DeFi tools, driving up volume and fees for SNX stakers."

Audits & Exploits

• Bug bounty program can be found [insert here].

Token

Utility

• From The Defiant (17-6-2021:

"The project will also issue a token, KWENTA, that will be used to participate in governance and to “bootstrap the community and fuel an early development team.”"

Technology

• Whitepaper can be found [insert here].
• Code can be viewed [insert here].

Implementations

• Built on: Synthetix and deployed on Optimism

How it works

• From Bankless (7-6-2022):

"Designed to facilitate zero-slippage synth trading, Kwenta — the primary decentralized exchange (DEX) in the Synthetix ecosystem — is a rebrand of the former official Synthetix Exchange interface. Interestingly, Kwenta doesn’t rely on an orderbook or liquidity pool model. Instead, the DEX employs a peer-to-contract (P2C) system in which synths are traded against a smart contract informed by Chainlink price feeds. Moreover, Kwenta only allows trading in synths, so other cryptocurrencies cannot be used here."

Upgrades

• Had an update towards Staking V2, including a 2 week staking cooldown (22-9-2023).
• From their twitter (14-1-2022):

"Tokenomics for the Kwenta Protocol have been updated based on community feedback.

TL:DR - No-lock, Depleting Fee Vesting now ADDED: A year-long lock on tokens can disincentivize individuals from joining a protocol. By offering the year-long lock-up with a depleting fee, Kwenta hopes to find balance between the needs of short and long-term holders. When Stakers or DAO roles receive Kwenta it will come with an 80% fee attached to it. This fee would deplete over a years timeframe."

Oracle Method

• Pyth is mentioned as oracle (7-3-2022).
• From Bankless (7-6-2022):

"The DEX employs a peer-to-contract (P2C) system in which synths are traded against a smart contract informed by Chainlink price feeds."

Roadmap

• Can be found [Insert link here].

Team, Funding, Partners

Team

• Full team can be found [here].
• Spun out of Synthetix (15-6-2021).

(:

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