The Kwenta Testnet Trading Competition was an incredible experience for the entire Kwenta community. We'd like to thank everyone that participated and all the Synthetix and Kwenta Core Contributors that worked tirelessly to ensure the competition went smoothly. The results and feedback from the competition has now been internally processed and we are excited to share the winners and prizes, as well as some of the learnings Core Contributors took from the experience.
We'd like to congratulate the top 100 traders. The winners are as follows
- JennaJoback - $46476.66 Total Trades: 19
- Denskyyyyyy1 - $46322.04 Total Trades: 11
- CanerBekar007 - $44132.21 Total Trades: 277
All prizes have been distributed to the winners. The prizes are as follows:
- 1st place: 15,000 sUSD worth paid in SNX + Kwenta Degen Certified NFT
- 2nd place: 7,000 sUSD worth paid in SNX + Kwenta Degen Certified NFT
- 3rd place: 3500 sUSD worth paid in SNX + Kwenta Degen Certified NFT
- 4th-20th place: 500 sUSD worth paid in SNX
- 21st-100th place: 200 sUSD worth paid in SNX
All participants are eligible for an official Kwenta Futures Testnet Competition POAP. Claim your POAP here.
1st, 2nd, and 3rd place traders received one of a kind Kwenta Degen Certified NFTs. These NFTs provide winners with access to a NFT gated group in the Kwenta Discord as well as future privileges.
The Kwenta trading competition provided the community with the opportunity to evaluate the current state of Synthetix's perpetual futures and provide feedback on the experience thus far. This gave Core Contributors deep insight into what aspects of futures needed to be optimized prior to the mainnet release. This section will recap the opportunities for improvement we observed and how Synthetix and Kwenta plan on resolving them.
Shortly after the competition began, the crypto markets as a whole experienced extreme upward trends; as traders were onboarded into the competition they immediately opened long positions with very few users opening short positions. This negatively affected the funding rate for the entirety of the competition causing inflated funding rates. Under real-world conditions, these funding rates would have leveled out as funding rate arbitrageurs would have taken up hedged short positions in order to capitalize on the funding skew. Additionally, the Synthetix Core Contributors are now using the data captured during the competition to further optimize the funding model for the mainnet release.
Prioritizing Fee Reduction
One of the most common concerns raised by the Kwenta community was that the trading fees would be too high to compete with alternative perpetual futures providers on mainnet. To remedy this, Synthetix Core Contributors have been working on SIPs that will strengthen the Synthetix debt pool and enable Synth trading fees to be reduced substantially. You can view our progress by looking at SIP-184 and SIP-181, as well as monitoring progress on Synthetix V3.
Although there are many dependencies that dictate which assets Kwenta can offer futures for, the upcoming upgrades to Synthetix will add a resiliency to the debt pool which will enable the protocol to expand its Synth offerings. The result will be fully decentralized perpetual futures for assets unavailable anywhere else in the ecosystem with deep liquidity for optimal price execution.
The Core Contributors gathered a significant amount of feedback on how the Kwenta user interface could be refined to offer an even better trading experience. This data is not only being used to optimize futures, but is driving an entire UI revamp which will prioritize synthetic futures as our flagship product, resulting in an experience that can rival even the most popular centralized exchanges without compromising on decentralization. This revamp includes a refresh on onboarding, navigation, charting, expected futures UI behaviour, and much more.
Competitions at Scale
With an Optimism regensis interrupting the competition, a faucet that was decidedly picky about which Twitter users to give Kovan sUSD to*, and a Leaderboard which required occasional adjustments due to the intricacies of calculating futures profits**, the Core Contributors identified multiple opportunities for competition performance optimization. These learnings will better prepare for upcoming competitions where the ante will be much higher for all participants...
*Note: during our end of competition winner audit, we found some users were able to get extra faucet distributions by retweeting someone else’s competition sign-up tweet. To make sure these users did not have an unfair advantage, their final PNL was adjusted to account for any additional sUSD they received, creating a fairer outcome for the competition.
**Note: Leaderboard PNL originally did not account for fees paid by traders to open a position or funding that was paid to traders. To ensure the Leaderboard outcome was accurate Kwenta Core Contributors took everyone’s total ending sUSD balance and subtracted the initial starting balance resulting in a precise total PNL number.
This was a fantastic experience for the Kwenta community and we appreciate everyone who joined the community in the process. We hope everyone enjoys their NFTs and prizes. Keep an eye out for the next competition, you won't want to miss it.
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