In a recent article titled “A Dash of hÖpΞm” written by Kain Warwick, Founder of Synthetix, a roadmap packed with massive growth for the Synthetix ecosystem was revealed. We highly recommend you give it a read. Amongst the many exciting bombshells that were dropped in the article, there was a piece of writing that revealed that Kwenta would be spinning out into an independent project with its own token. Now that the secret is out, we will use this article to outline why that transition is taking place and what it means for both Synthetix stakers and Kwenta users.
How Kwenta came to be
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. The team developed a vision for Kwenta that would position it as a trading hub that could take on the giants in the cryptocurrency trading space.
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.
As for Kwenta, it now facilitates nearly four times the amount of monthly trades that Synthetix.Exchange sees and has reached parity with the volume Synthetix.Exchange generates. However, for the developers working on Kwenta, we know these are abysmal metrics to boast in comparison to what Kwenta is truly capable of. Kwenta never fully realized its original vision: parts of early designs never got implemented, optimization feedback sits in a backlog, and new features are completely out of reach. With Synthetix Core Contributors actively working on transitioning Synthetix to L2, creating infrastructure for futures, working with Chainlink to broaden our available assets, researching Synthetix V3, and an endless list of other improvements, Kwenta struggles to receive the development resources it needs to reach its true potential.
The Dawn of Independence
The solution we’ve found is to formalize Kwenta as an independent project operating outside of the Synthetix core contributors. With a dedicated team of developers and its own bustling community, Kwenta can refocus on its original goal of becoming the leading DeFi trading hub.
To help us reach this goal, Kwenta will be launching its own token: $KWENTA.
$KWENTA will have two primary uses. This first use case will be to participate in governance. Kwenta will be managed and optimized by the Kwenta community, allowing a community of highly talented traders to tweak and refine the exchange to create the ideal platform for world-class trading. The second use case is for funding and long term profitability. The Kwenta token will be used to bootstrap the community and fuel an early development team that can lead it towards becoming a self-sustaining platform.
$KWENTA is intended to compliment the Synthetix community and act as a launch tool which will allow Kwenta to deliver on a vision that was unattainable with the status quo, ultimately driving additional value for all stakeholders involved.
The transition will take place gradually with our sights on summer for the token's kick-off. Stay tuned, we'll be releasing more information as the transition unfolds.
We will be working on splitting out Kwenta in a timely manner. If you are interested in joining the Kwenta early Kwenta development team, we are currently hiring for a Full-Time UX Designer, Front-end Developer, and Backend/Solidity Developer.
For more official updates, follow us on Twitter.
New Kwenta Discord
All great cryptocurrency projects have a Discord. Today, we are happy to kick off the official Kwenta Discord! The Kwenta Telegram will remain open but Discord will become the primary home for the Kwenta community.
Join the Kwenta Discord here: https://discord.gg/HUPyQ63TFF