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November 13, 2024
The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors from last week.
👉TLDR
The Kwenta acquisition proposal has been approved and is underway: Kwenta will be acquired by Synthetix in a token for token transaction.Changes for Kwenta Token Holders: 1 KWENTA converts to 17 SNX 3-month lock period (starting November 15)9-month linear vestingEscrowed KWENTA can be vested with 0% penaltyChanges for Traders:Trading functionality for existing Synthetix Perps users will remain intact during the transition.The Perennial Finance integration may be phased out; updates to follow.Changes for Rewards and Incentives Earners:Kwenta’s points program and VIP/Referral rewards for traders will be evaluated and potentially restructured or replaced by Synthetix with new incentives.Existing rewards can still be claimed by users.Changes in Structure:Governance decisions will be handled through the Synthetix governance model.KWENTA holders can now participate in Synthetix governance. Once the acquisition is complete, KWENTA will cease to exist.Shared mission: building the premier decentralized derivatives platform in DeFi!
Spartan Council and SIP updates
With most of the team at devcon, we’ve got a short update for you guys this week! The Kwenta acquisition proposal has been approved and is underway, marking Synthetix’s first major strategic move since the recent referendum. With the approval of SIP-411 by the Spartan Council and KIP-138 by the Kwenta Council, Kwenta will be acquired by Synthetix in a token<>token transaction.
By combining Kwenta’s trading expertise with Synthetix’s liquidity engine, both projects can focus on a single goal: delivering the best decentralized derivatives experience for traders.
This acquisition will of course bring about some changes, so let’s briefly go over what will be different for Kwenta users:
Kwenta Token Holders:
Under the unification proposal, KWENTA holders will convert their tokens to SNX at a rate of 1 KWENTA to 17 SNX. The conversion will follow a 3-month lock period starting on November 15, 2024, after which there will be a 9-month linear vesting period. KWENTA token holders will be able to redeem vested SNX tokens anytime during the vesting period and escrowed KWENTA can be vested without penalties.
Traders:
Not much change! For existing Synthetix Perps users, all current trading functionality will remain intact during the transition. The rebranding and integration efforts will be handled quietly behind the scenes, ensuring no disruption to the trading experience. However, the Perennial Finance integration may be phased out, with updates to follow.
Rewards and Incentives Earners:
Kwenta’s points program and VIP/Referral rewards for traders will be evaluated and potentially restructured or replaced by Synthetix with new incentives. But existing rewards can still be claimed by users.
Structural Changes:
Governance decisions will be handled through the Synthetix governance model, streamlining the entire protocol under a unified system. KWENTA holders can now participate in governance, shaping the future direction of the combined protocol. Once the acquisition is complete, KWENTA will cease to exist, and governance and tokenomics will be fully integrated under the Synthetix structure.
As these two projects officially reunite, a shared mission is created: building the premier decentralized derivatives platform in DeFi. Kwenta and Synthetix are laying the groundwork for scaling liquidity, enhancing user growth, and accelerating product innovation. The new unified ecosystem will allow both teams to streamline their priorities and provide consistent updates, bringing DeFi one step closer to a future of accessible, high-quality perpetuals trading.
SNXweave will be covering this acquisition as it takes place, so stay tuned for any relevant updates as these projects and communities merge into one. In the meantime, check out Kwenta’s explainer blog and Synthetix’s post to read more about the merger.
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SIP/SCCP status tracker:
SIP-411: Acquire Kwenta and Relaunch Synthetix Exchange, Status: approved
KIP-138: Synthetix Acquisition Proposal, Status: approved
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