Tradingview Integration (Beta)

We are excited to announce that due to popular demand, we've included the beta* version of the Kwenta TradingView integration in this release. For the first time, Kwenta traders can leverage the powerful charts and tools Tradinview provides to analyze trading pairs directly on Kwenta. This puts Kwenta one step closer to giving traders a familiar CEX (centralized exchange) experience on Kwenta.

*Only Daily and Weekly candles available at this time, more granularity to come in future iterations

Shorting on L2 Kwenta

Short selling on Kwenta was initially successful on mainnet Ethereum. However, excessive transaction costs have made the mechanism too costly for smaller traders. Shorting allows downward movements in an assets price to be turned into profits by traders, and it just got OPTIMISTIC. Shorting sBTC, sETH and sLINK is now live on the Optimism L2 network, making expensive transaction costs a thing of the past, offering traders faster transactions, and considerable reductions in network fees.

How does Opening a Short Position Work?

Traders of any size can now cost-effectively open short positions on Layer 2 synthetic assets (sBTC, sETH, and sLINK). Kwenta traders use sUSD as collateral to borrow assets from the Synthetix Debt pool. When the trader borrows (shorts) an asset, it is instantly sold for sUSD. Depending on the selected collatorization-ratio (c-ratio) a portion of sUSD is returned to the trader, and some is locked as collateral.

Traders receive sUSD when they short sell assets borrowed from the Debt Pool.  The short positions will remain open while the returned sUSD can be deployed elsewhere, or add leverage.

Exiting a Short Position

When traders are ready to exit a short position, they repay the asset borrowed from the Synthetix Debt Pool. If the price of the borrowed asset decreased, the trader will keep leftover sUSD after the loan is repaid (short position closed). On mainnet Ethereum, borrowed assets when shorting on Kwenta have to be returned in their borrowed form (sBTC, sETH etc.)

Kwenta on Optimism makes possible the repayment of borrowed assets with sUSD. The sUSD will be swapped into the borrowed asset by the system (at market rate) and repay the outstanding borrowed asset balance.

Shorting Mechanism Upgrades

The Kwenta Shorting mechanism on Optimisim comes with a list of improvements that make the mechanism more user friendly and include:

  • Removed the position interaction delay when users try to edit a new position within the first 60 minutes.
  • Allow the borrower (trader) to repay (close) their short position with sUSD.
  • Reduced fee rate of 40bps
  • Optimism Layer-2 provides Kwenta transactions lightning speed while reducing network costs significantly
*There will be a 20% skew limit for assets borrowable from the debt pool, this ensures that only 20% in total of any debtpool asset can be shorted. While not having this would not pose a concern for higher volume assets, providing this for lower volume synths will help curb undesirable outcomes.

For Help getting started with Shorting on Kwenta read our blog post here.

Get Started

Try Short selling on Kwenta!

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