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 Synthetix, showcasing the utility of synthetic assets while allowing Synthetix to focus on its core mission of liquidity provision. Kwenta’s independence enabled it to develop a focused and responsive trading platform, innovating rapidly and engaging deeply with the community to create the most successful SNX front end to date. However, this separation also introduced challenges, including a divergence in priorities and coordination bottlenecks that hindered the development of Synthetix Perps.

With the unification now approved, these challenges are resolved. This new structure allows Kwenta’s trading and frontend expertise to combine with Synthetix’s liquidity engine, creating a powerhouse team singularly focused on delivering the best product. For traders, this unified vision brings the trading experience front and center at every level of the development process.

What This Means for Kwenta Token Holders

Under the approved proposal, KWENTA token holders will convert their holdings to SNX at a rate of 1 KWENTA to 17 SNX, reflecting a total valuation of approximately $13.2 million. This valuation includes only outstanding KWENTA held by the community, and not the tokens held in either project treasury.

The SNX tokens issued in this transaction will follow a 3-month lock period beginning on November 15, 2024, with a 9-month linear vesting schedule starting after this lock. KWENTA holders will be able to redeem their vested SNX at any point during this period.

Escrowed KWENTA and Staking Rewards

To make this transition seamless:

• Escrowed KWENTA: All escrowed entries may be vested with a 0% penalty once the transition begins, allowing holders to access these tokens without early vesting fees.

• Unclaimed Rewards: All unclaimed staking rewards will be claimable with 0 vest fee.

• USDC Rewards: Existing USDC rewards will remain claimable, but no new rewards will accumulate after November 11th, 2024

Once holdings are converted to liquid KWENTA, a new contract will allow conversion into SNX under the proposal terms.

Governance and Future of the KWENTA Token

Once redeemed for SNX tokens, the KWENTA token will no longer exist, as all governance, tokenomics, and front-end decisions will be governed by the Synthetix governance structure. This proposal supersedes all previous tokenomics plans, streamlining governance under a single, unified protocol.

By exchanging KWENTA for SNX tokens, stakeholders will have the opportunity to participate in governance decisions and play an active role in shaping the future of the unified protocol.

Rewards Programs and Kwenta Points

Participants in the Kwenta points program represent the cornerstone of the Kwenta community, and we encourage users to participate with Synthetix and share your feedback on how Synthetix can best welcome our traders. There are no confirmed rewards incentives at this time, but Kwenta core contributors will facilitate the handover of existing points data.

Additionally, traders on Optimism are currently earning VIP rewards, and Referral Rewards. Synthetix will be evaluating these programs and may decide to discontinue, restructure, or replace them with new incentives. If you've already earned rewards under these programs, we encourage users to claim their past rewards.

Further updates on incentives and rewards will be provided by Synthetix as we move forward.

For Traders: Business as Usual

For Synthetix Perps users, nothing changes—all existing functionality, including trading, charting, and user tools, will remain live and accessible. Traders can continue to engage with Synthetix Perps markets without interruption, while Synthetix works behind the scenes on any rebranding and integration efforts.

Perennial Integration

As part of this transition, support for Perennial Finance may be discontinued. This change will not happen immediately, and additional information will be provided as the handover progresses. Users wishing to continue using the Perennial integration may access their positions directly through Perennial Finance.

News and Updates

Our Kwenta Discord and social media channels will remain active, providing regular updates and support throughout this process. For any questions, comments, or feedback directed at Synthetix governance and core contributors, the Synthetix Discord is open to our community. You can also find news about the Kwenta acquisiton, and the Synthetix Reboot in the Synthetix Blog.

During this transition, the Synthetix team will work closely with Kwenta’s community to ensure a smooth and transparent transition for users.

The Road Ahead

This unification is more than just an operational shift; it’s a transformative leap toward establishing DeFi’s premier perpetuals platform. By joining forces, Kwenta and Synthetix are creating a powerful foundation for scaling liquidity, user growth, and product innovation. The single, aligned ecosystem allows us to streamline priorities and deliver more consistent, reliable updates to our users.

Together, we’re embracing a future where DeFi is accessible, efficient, and uncompromising in quality. Thank you to every community member who voted, participated in discussions, and contributed feedback. We couldn’t be more excited to step into this next chapter with you.

We encourage our Kwenta community to join the Synthetix community, where you can stay informed, share your thoughts, and participate in shaping the future of this unified protocol. Together, we’re building something remarkable, and we’re excited to have you with us on this journey!

Join the Kwenta Community

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To trade perps, visit Kwenta.