With the launch of KIP-70, which rewards all traders with $KWENTA for two weeks, and in anticipation of two simultaneous $OP rewards programs being run in cooperation with Synthetix, we’ve put together a master guide to maximizing your rewards through trading and staking.
Ready to get the details on how you can earn? Let’s dig in!
Rewards for Rewards for futures traders fall into three categories. All three of these rewards can be conveniently tracked and claimed directly on Kwenta. All three rewards programs are calculated differently, and may include boosts or additional rewards for staking $SNX or $KWENTA, but staking is not currently required to earn. Trading fees refers only to protocol fees, and does not include funding or keeper fees.
Trading rewards from each program cannot be known until the end of the weekly epoch. Estimated rewards may be shown, but are not guaranteed to reflect actual rewards distributions.
Calculation details and requirements may change without notice. Please watch the #announcements channel in the Kwenta Discord for the latest information.
* $KWENTA rewards schedule is set to 5% of inflation, and may be found here.
Rewards epochs listed below begin at 0:00 UTC. All rewards will become claimable weekly, following the epoch they are earned.
Synthetix will provide a total of 5,310,000 $OP over the course of 20 weeks. Trades made after April 19th, 2023 at 0:00 UTC will qualify for rewards, which will be distributed weekly. Synthetix will use a 3 week ramping period, followed by 17 weeks of 300,000 $OP weekly.
To earn this $OP, simply trade perps on Kwenta. All traders will earn rewards based on fees paid, but $SNX stakers will receive a rewards boost based on active sUSD debt of their staking position at the beginning of the epoch in which rewards are earned. Boost tiers are shown below.
If you are not familiar with Synthetix staking, or how to understand your active debt, please see the Synthetix staking guide.
Kwenta will only distribute rewards for the Synthetix program which carry the Kwenta tracking code indicating they were made from the Kwenta UI, or no tracking code at all, indicating they were a result of direct contract interaction. Trades on other Synthetix Perps UIs are not eligible for rewards on Kwenta.
Users will be assigned a trader score based on their total trading fees paid. *This calculation does not count execution fees.
`rawScore’ = tradefeesPaid
The trader score will then be calculated, including a staked SNX (Synthetix) multiplier:
`traderScore = rawScore * stakedTierMultiplier`
Full details of the Synthetix Perps v2 Trading Incentives program may be found in this blog from Synthetix.
Kwenta will provide a total of 600,000 $OP over the course of 20 weeks, which may be earned in addition to other rewards. Trades made after April 19th, 2023 at 0:00 UTC will qualify for rewards. Kwenta will distribute 30,000 $OP weekly during the 20 week period.
To earn this $OP, simply trade perps on Kwenta. All traders will earn rewards based on fees paid, but $KWENTA stakers will receive a rewards boost based on the amount of $KWENTA staked at the beginning of the epoch in which rewards are earned. Boost tiers are shown below.
Each trader will still earn a pro rata share of the total weekly rewards as:
traderScore / sum(traderScores) * weeklyReward total = yourReward
Although Kwenta $OP rewards are separate from Synthetix, users will be able to claim both from the Rewards page in the Kwenta app.
$KWENTA trading rewards are earned based on fees paid and Kwenta staked, using a Cobb-Douglas function. 5% of inflation is allocated weekly to $KWENTA rewards. The weekly inflation schedule may be found here. Additional detail may be found on the $KWENTA Tokenomics Dune dashboard.
Here are some important details of the $KWENTA trading rewards program:
Beginning April 12th, 2023 and lasting for 2 weeks, $KWENTA rewards will be earned by all traders.
Beginning the week of April 26th, 2023, $KWENTA rewards are scheduled to return to their previous calculations, which reward stakers only. Rewards qualifications and schedules may be adjusted via governance, so please watch Discord announcements for the latest information.
Under both structures, a trader’s $KWENTA rewards will increase as their staked $KWENTA balance increases.
Kwenta incentives will continue after the $OP incentive program ends, drawing on 5% of inflation for total trading rewards unless adjusted by governance.
Full details including current rewards calculation formulas can be found in the latest version of our $KWENTA rewards blog.
Our partners at Lyra have released a new incentive structure, which includes the opportunity to earn their share of a trading rewards pool. Trading rewards v2 replaces the previous rewards structure. Please be aware of this change and see the details of the new program in this blog from Lyra.
The Kwenta options interface will continue to support features offered by Lyra, bringing Kwenta traders additional flexibility in their trading, and new ways to earn rewards without leaving Kwenta. Watch for upcoming news and announcements containing additional details on rewards for options traders, LPs, and improvements of the Kwenta Options interface.
Waiting for more opportunities and exciting developments from Kwenta? These rewards programs kick off a series of improvements from both Synthetix and Kwenta which take the perps product to new levels. Kwenta developers and beta tester volunteers have been rigorously evaluating the highly anticipated Smart Margin release and UI redesign, and the private beta is nearly complete. In conjunction with Smart Margin, Synthetix has been working on several major upgrades and improvements to the underlying perps market contracts.
You can look forward to:
OI increases of 2x or more on most markets
Fees as low as 2bp on crypto markets
Stop losses and limit orders
A sleek UI redesign that makes you in control
Look out for these announcements and more in the coming days, and happy earning!
If you haven't already, join the Kwenta community on Discord. To be the first to learn about new updates to Kwenta, follow us on Twitter. To trade synthetic assets and futures, visit Kwenta.