The following post contains a recap of news and important updates from the Kwenta Protocol.
Kwenta Interim Council
Kwenta SIPs 177 & 178 received landslide approval without a single veto. Kwenta now has an official Interim Council and treasuryDAO election process, bringing Kwenta closer to being managed independently by its community. For OPSEC reasons, the TreasuryDAO will remain anonymous. Kwenta Interim Council members, however, will be publicly disclosed and should be announced soon.
Our friends over at Synthetix completed their Wezen protocol upgrade! This release involved deprecating low-volume Synths and iSynths on L1. Deprecated Synths will remain at the price they were frozen at until redeemed for sUSD. Kwenta traders can view their deprecated Synth balances and easily redeem all deprecated tokens for sUSD in a single transaction by using the Kwenta Dashboard.
Shorting on L2
Shorting on L2 is being polished. SIP 135 is high priority for the Synthetix team as it's critical for many applications being built using Synthetix on Layer 2. Testing on Kovan Optimism should be available soon. Kwenta users will have the opportunity to provide feedback on the experience to Core Contributors.
With the current liquidity model for Synths, Synthetix supports trades with zero slippage which carries the risk of over exerting its underlying debt pool. With the introduction of Simulated Liquidity Kwenta will retain its ability to offer the deepest liquidity available on all trades but will pose a pricing-curve premium as trade sizes increase in order to better protect the underlying debt pool. This will strengthen the Synthetix protocol, allowing for a more rapid expansion of product offerings. Similarly, Synthetix is also investigating a Dynamic Exchange Fee which would greatly reduce front-running risks and offer a deeper level of composability to the protocol.
Kwenta Futures developments are chugging along with a testnet version launching soon. Kwenta is currently preparing to launch a testnet competition which is planned to roll out in the near future. You can be the first to know about the launch of the upcoming futures competition by filling out the Kwenta Futures Competition Form.
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