Synthetix ExchangeThe Kwenta Token Migration
The swap interface for migrating your KWENTA tokens to SNX is now live. This migration unlocks opportunities to participate in the Synthetix system and DAO, where your SNX tokens can be staked and used to help govern the protocol. Follow the simple steps below to ensure a smooth transition and start vesting your tokens today. For more details about the unification with Synthetix, check out this blog.Key Details About Token VestingTokens began vesting on November 12th, even if you haven’t depo...
Synthetix ExchangeKwenta x Synthetix: Next Steps
Following the unification announcement, we’re now entering the next phase of the transition. This stage focuses on streamlining token migration, refining incentives, and ensuring traders experience a smooth shift as Kwenta evolves into Synthetix Exchange.Social Media UpdatesKwenta’s community spaces are evolving to support this transition while ensuring traders and community members continue to have access to resources and support.Discord ChangesWhile most channels will be archived, key chann...
Synthetix ExchangeKwenta x Synthetix: A Unified Future
Today marks a monumental step forward for both Kwenta and Synthetix. Following the approval of KIP-138 by the Kwenta community and SIP-411 by the Synthetix community, the two projects will now reunite under a single mission: to build the most powerful decentralized derivatives platform in DeFi.Why Was This Decision Made?This unification brings Kwenta full circle. Originally launched in 2021 as an independent protocol through SIP-179, Kwenta was designed to be a dedicated front end for Synthet...
Kwenta has been acquired by Synthetix. Please follow along at https://blog.synthetix.io/ Trading is live at https://exchange.synthetix.io/
Synthetix ExchangeThe Kwenta Token Migration
The swap interface for migrating your KWENTA tokens to SNX is now live. This migration unlocks opportunities to participate in the Synthetix system and DAO, where your SNX tokens can be staked and used to help govern the protocol. Follow the simple steps below to ensure a smooth transition and start vesting your tokens today. For more details about the unification with Synthetix, check out this blog.Key Details About Token VestingTokens began vesting on November 12th, even if you haven’t depo...
Synthetix ExchangeKwenta x Synthetix: Next Steps
Following the unification announcement, we’re now entering the next phase of the transition. This stage focuses on streamlining token migration, refining incentives, and ensuring traders experience a smooth shift as Kwenta evolves into Synthetix Exchange.Social Media UpdatesKwenta’s community spaces are evolving to support this transition while ensuring traders and community members continue to have access to resources and support.Discord ChangesWhile most channels will be archived, key chann...
Synthetix ExchangeKwenta x Synthetix: A Unified Future
Today marks a monumental step forward for both Kwenta and Synthetix. Following the approval of KIP-138 by the Kwenta community and SIP-411 by the Synthetix community, the two projects will now reunite under a single mission: to build the most powerful decentralized derivatives platform in DeFi.Why Was This Decision Made?This unification brings Kwenta full circle. Originally launched in 2021 as an independent protocol through SIP-179, Kwenta was designed to be a dedicated front end for Synthet...
Kwenta has been acquired by Synthetix. Please follow along at https://blog.synthetix.io/ Trading is live at https://exchange.synthetix.io/
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We're thrilled to report that Kwenta is now completely optimized for mobile, has completed its closed testing, and is accessible to everyone as a public Beta today, Thursday, July 14th, 2022!
Kwenta is committed to developing trading tools that are as openly accessible, intuitive, and powerful. With the help of advancements in smartphone technology, the power of a fully-fledged desktop trading platform can now fit into the palm of your hands. The release of our mobile experience is here, and it's the next step in realizing our goal of bringing financial tools to everyone.
With this significant development milestone complete, Kwenta adds itself to the growing list of DeFi protocols to provide a dedicated mobile implementation. Mobile support brings our users, and defi users as a whole, an experience closer to parity with what centralized exchanges provide.
Trade Futures with easy and intuitive order entry and editing
Explore integrated charts with indicators and get real-time oracle quotes
Tap into a social aspect of trading and view the leaderboard to track the most profitable traders on the Kwenta exchange
Swap any ERC20s directly on Kwenta with the integrated power of 1inch
Our custom-built mobile trading implementation is designed with the active perpetual futures trader in mind.
Synthswap began its journey as a decentralized swap tool designed to trade synthetic assets or Synths on the Optimism & Ethereum mainnet network, with one goal in mind, to swap synths with no slippage and high liquidity.
SynthSwap currently only allows exchange between synthetic assets (sUSD, sETH, sBTC, etc.). Building out the functionality of our swap product provides a better UX for Kwenta users while reducing onboarding constraints for traders.
Leveraging 1inch (Smart Contracts and API) and Synthetix, SynthSwaps horizon could expand. With the passage of KIP-21, we can enable the exchange of any ERC20 tokens for any synths (and vice versa) directly on our platform. The first iteration will support most ERC20 tokens that can already be swapped on 1inch but will withhold the ability to add custom tokens for swaps.
Swap Traders can now:
Swap any ERC20 tokens for synths
Swap any ERC20 tokens for ERC20 tokens
Futures Traders can now:
Swapping any ERC20 tokens for sUSD to use as collateral to open Perpetual Futures positions.
SynthSwap smart contracts utilize both 1inch and Synthetix to execute ERC20 token swaps. SynthSwap provides swap functionality for ETH and 1inch supported ERC20 tokens to synths and vice-versa.
Swap aggregation data is generated off-chain via 1inch's API and used on-chain to efficiently execute token exchange through 1inch smart contracts. The Synthetix exchange fills in the last leg of the swap if needed (if swapping Synth <-> Synth). This allows for users to go from ETH to sETH in one transaction vs. previously having to go from ETH to sUSD and then a separate transaction for sUSD to sETH.
SynthSwap NPM Package: npmjs.com/package/@kwenta/synthswap Kwenta aggregator contracts: github.com/Kwenta/synthswap
As of today, traders who use Kwenta Futures will be able to benefit from more significant leverage on trading pairs $ETH, $BTC, $SOL, and $LINK.
With the expansion of available leverage at the disposal of traders, which went live today, the range of leverage increases and is now between 1x-25x. This allows traders to draw on much more leverage for a more negligible collateral risk.
An example, for a 100 sUSD collateral deposit, Kwenta Futures will enable traders to access up to 25,000 sUSD in capital.
As such, you will have a much stronger position overall and more funds at your disposal. This will help traders with capital efficiency while not hindering the enjoyable trading experience.
With increased leverage comes increased risk, and we advise all traders to educate themselves on risk management techniques and manage their risk accordingly.
The skewScale determines the funding rate for a given level of skew, as per the function maxFunding*skew/skewScale, raising the skewScale will result in a lower funding rate.
skewScale was recently lowered by a significant amount due to the state of the markets, resulting in extremely high funding. This was done initially due to the high volatility and consistent price movement in a single direction.
This situation seems to have abated, allowing Synthetix to significantly reduce funding rates for our traders. In some cases, skew impact on the funding rate has been reduced by up to 15x, bringing Kwenta in line with funding rates traders expect.
The impact on the funding rate is shown below. The reduction of funding rate impact is directly proportional to the magnitude of increase in the new skew scale. Synthetix and Kwenta will continue to work together to provide favorable funding rates for traders while minimizing risks for SNX stakers.
Keepers can execute limit orders, liquidate under-collateralized loans, and autonomously about anything on-chain. Automated keepers are set in place to automatically execute Next Price orders when their conditions are met (at least one oracle price update has passed) or handle liquidations of futures positions that fall under the maintenance margin minimums. There is no manual intervention needed from traders on Kwenta to execute Next Price orders or for positions to be liquidated.
The minKeeperFee is used for two purposes:
It's the minimal fee paid for a liquidation to a keeper (for small positions).
It's the constant fee paid to a keeper for executing a next-price order. The fee is withheld from the user when submitting the order.
This means that small next-price orders aren't viable when executed by keepers (because of the previously imposed $5 fixed keeper fee).
Because of the low cost of executing transactions on optimism, which results in keepers needing to be paid far less to fulfill next price orders and liquidations the minKeeperFee has been reduced from $5 to $1.
Due to market volatility, it is possible to trade before an oracle can update its price, guaranteeing a risk-free profit for frontrunners. A risk-free profit for traders means that SNX stakers incur a direct loss every time someone successfully front-runs a price update. It’s imperative to neutralize these. Due to inherent latency in commodity feeds, vis-a-vis their crypto market counterparts. Maker/taker fees on silver futures have been raised to 20 and 25 bp from 15 and 15 bp to reduce the chance of latency arbitrages.
Cryptocurrency trading is subject to high market risk. Please make your trades cautiously. Kwenta & Synthetix will make best efforts to choose high-quality coins, but will not be responsible for your trading losses. Thanks for your support!
If you haven't already, join the Kwenta community on Discord.
To learn more about how you can acquire a DAO role as a developer, marketer, governance contributor, or professional trader, visit our Documentation.
To be the first to learn about new updates to Kwenta, follow us on Twitter.
To trade synthetic assets and soon futures, visit Kwenta.
We're thrilled to report that Kwenta is now completely optimized for mobile, has completed its closed testing, and is accessible to everyone as a public Beta today, Thursday, July 14th, 2022!
Kwenta is committed to developing trading tools that are as openly accessible, intuitive, and powerful. With the help of advancements in smartphone technology, the power of a fully-fledged desktop trading platform can now fit into the palm of your hands. The release of our mobile experience is here, and it's the next step in realizing our goal of bringing financial tools to everyone.
With this significant development milestone complete, Kwenta adds itself to the growing list of DeFi protocols to provide a dedicated mobile implementation. Mobile support brings our users, and defi users as a whole, an experience closer to parity with what centralized exchanges provide.
Trade Futures with easy and intuitive order entry and editing
Explore integrated charts with indicators and get real-time oracle quotes
Tap into a social aspect of trading and view the leaderboard to track the most profitable traders on the Kwenta exchange
Swap any ERC20s directly on Kwenta with the integrated power of 1inch
Our custom-built mobile trading implementation is designed with the active perpetual futures trader in mind.
Synthswap began its journey as a decentralized swap tool designed to trade synthetic assets or Synths on the Optimism & Ethereum mainnet network, with one goal in mind, to swap synths with no slippage and high liquidity.
SynthSwap currently only allows exchange between synthetic assets (sUSD, sETH, sBTC, etc.). Building out the functionality of our swap product provides a better UX for Kwenta users while reducing onboarding constraints for traders.
Leveraging 1inch (Smart Contracts and API) and Synthetix, SynthSwaps horizon could expand. With the passage of KIP-21, we can enable the exchange of any ERC20 tokens for any synths (and vice versa) directly on our platform. The first iteration will support most ERC20 tokens that can already be swapped on 1inch but will withhold the ability to add custom tokens for swaps.
Swap Traders can now:
Swap any ERC20 tokens for synths
Swap any ERC20 tokens for ERC20 tokens
Futures Traders can now:
Swapping any ERC20 tokens for sUSD to use as collateral to open Perpetual Futures positions.
SynthSwap smart contracts utilize both 1inch and Synthetix to execute ERC20 token swaps. SynthSwap provides swap functionality for ETH and 1inch supported ERC20 tokens to synths and vice-versa.
Swap aggregation data is generated off-chain via 1inch's API and used on-chain to efficiently execute token exchange through 1inch smart contracts. The Synthetix exchange fills in the last leg of the swap if needed (if swapping Synth <-> Synth). This allows for users to go from ETH to sETH in one transaction vs. previously having to go from ETH to sUSD and then a separate transaction for sUSD to sETH.
SynthSwap NPM Package: npmjs.com/package/@kwenta/synthswap Kwenta aggregator contracts: github.com/Kwenta/synthswap
As of today, traders who use Kwenta Futures will be able to benefit from more significant leverage on trading pairs $ETH, $BTC, $SOL, and $LINK.
With the expansion of available leverage at the disposal of traders, which went live today, the range of leverage increases and is now between 1x-25x. This allows traders to draw on much more leverage for a more negligible collateral risk.
An example, for a 100 sUSD collateral deposit, Kwenta Futures will enable traders to access up to 25,000 sUSD in capital.
As such, you will have a much stronger position overall and more funds at your disposal. This will help traders with capital efficiency while not hindering the enjoyable trading experience.
With increased leverage comes increased risk, and we advise all traders to educate themselves on risk management techniques and manage their risk accordingly.
The skewScale determines the funding rate for a given level of skew, as per the function maxFunding*skew/skewScale, raising the skewScale will result in a lower funding rate.
skewScale was recently lowered by a significant amount due to the state of the markets, resulting in extremely high funding. This was done initially due to the high volatility and consistent price movement in a single direction.
This situation seems to have abated, allowing Synthetix to significantly reduce funding rates for our traders. In some cases, skew impact on the funding rate has been reduced by up to 15x, bringing Kwenta in line with funding rates traders expect.
The impact on the funding rate is shown below. The reduction of funding rate impact is directly proportional to the magnitude of increase in the new skew scale. Synthetix and Kwenta will continue to work together to provide favorable funding rates for traders while minimizing risks for SNX stakers.
Keepers can execute limit orders, liquidate under-collateralized loans, and autonomously about anything on-chain. Automated keepers are set in place to automatically execute Next Price orders when their conditions are met (at least one oracle price update has passed) or handle liquidations of futures positions that fall under the maintenance margin minimums. There is no manual intervention needed from traders on Kwenta to execute Next Price orders or for positions to be liquidated.
The minKeeperFee is used for two purposes:
It's the minimal fee paid for a liquidation to a keeper (for small positions).
It's the constant fee paid to a keeper for executing a next-price order. The fee is withheld from the user when submitting the order.
This means that small next-price orders aren't viable when executed by keepers (because of the previously imposed $5 fixed keeper fee).
Because of the low cost of executing transactions on optimism, which results in keepers needing to be paid far less to fulfill next price orders and liquidations the minKeeperFee has been reduced from $5 to $1.
Due to market volatility, it is possible to trade before an oracle can update its price, guaranteeing a risk-free profit for frontrunners. A risk-free profit for traders means that SNX stakers incur a direct loss every time someone successfully front-runs a price update. It’s imperative to neutralize these. Due to inherent latency in commodity feeds, vis-a-vis their crypto market counterparts. Maker/taker fees on silver futures have been raised to 20 and 25 bp from 15 and 15 bp to reduce the chance of latency arbitrages.
Cryptocurrency trading is subject to high market risk. Please make your trades cautiously. Kwenta & Synthetix will make best efforts to choose high-quality coins, but will not be responsible for your trading losses. Thanks for your support!
If you haven't already, join the Kwenta community on Discord.
To learn more about how you can acquire a DAO role as a developer, marketer, governance contributor, or professional trader, visit our Documentation.
To be the first to learn about new updates to Kwenta, follow us on Twitter.
To trade synthetic assets and soon futures, visit Kwenta.
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