In the coming weeks, Kwenta will be launching on Optimistic Ethereum L2. The launch of L2 scaling on OΞ will usher in a new era for decentralized finance, further narrowing the gap between DeFi applications and those offered by centralized service providers. We expect this to be an opportunity to demonstrate the full potential of Kwenta for the first time.
Kwenta is designed to enable users to easily access the power of zero slippage trades, offering traders a massive advantage over the rest of the market. With low fees and a high performance trading experience, this advantage will become much more apparent, even for trades at smaller sizes.
The next stage of our transition to L2 will involve a phased rollout. This article will outline the stages and better prepare users for what's to come.
Phase One: Kwenta L2 Beta
During phase one, users will be able to switch to Kwenta on L2, however, there will be a very limited set of assets available for trading. At launch, users will be able to trade:
This phase will be used to ensure that Kwenta can smoothly operate on L2, allowing us to test and refine the trading experience. We will be gradually adding more assets to L2 Kwenta in this phase, until the most popular assets on L1 Kwenta are also available on L2.
Phase Two: Trading Incentives
In the second phase, L2 Kwenta will include the same set of features L1 users are accustomed to. This will include support for most current Synths as well as short selling for sETH and sBTC.
To incentivize traders to migrate to L2 Kwenta, weekly SNX rewards will be distributed to traders on L2 according to their share of total trading volume.
Phase Three: Futures and the L2 Trading Competition
The final phase of our L2 rollout will include perpetual swaps, which promises to be the most exciting feature added to Kwenta so far. This will enable users to trade with leverage in any market supported by Synthetix including crypto, equities, and commodities.
For the launch of Futures, we will also be running a trading competition with not only SNX rewards, but also distributions of the brand new Kwenta token (not yet released) up for grabs. The KWENTA token will begin a new era for the interface and allow it to operate independently of Synthetix, with its own governance structures, optimization paths and value accrual mechanism. It’s time for Kwenta to shine in its own right and we’ll be sharing more about how the community can contribute to its growth and share in its success.
Stay up to date on L2 news by following Kwenta on Twitter.
If you have questions or feedback, join the Kwenta community on Telegram.