Synthetix perps DEX acquires Kwenta to unify ‘strategic priorities’ of both protocols

As part of SIP-411, KWENTA tokens will be redeemable for SNX and subsequently deprecated

article-image

Synthetix co-founder Kain Warwick | Permissionless III by Mike Lawrence for Blockworks

share


This is a segment from the 0xResearch newsletter. To read full editions, subscribe.


In early October, Synthetix passed an ambitious governance proposal to “reboot” the entire project. Major changes proposed included the likes of revamping SNX tokenomics, introducing a SNX-backed stablecoin, launching on Ethereum mainnet and Solana and redesigning the Synthetix frontend.

As part of that overhaul, SIP-411, which passed yesterday with 6/6 votes from Synthetix councilors, is reacquiring Kwenta as a frontend and bringing it back as part of Synthetix’s relaunch.

Kwenta was once a Synthetix project. Spun out in 2021 as a dedicated frontend for Synthetix to operate independently as per SIP-179, it is now referred to by Synthetix co-founder Kain Warwick as “unequivocally a terrible idea.”

Benjamin Celermajer, Synthetix’s strategy seat, said of the acquisition: “Bringing Kwenta back into Synthetix will unify the vision, the roadmap and the strategic priorities of both protocols. This will help Synthetix provide the best possible user experience to its community of traders and a seamless integration experience to the various protocols that utilize Synthetix liquidity.”

As part of SIP-411, KWENTA token holders will be able to exchange their KWENTA to SNX at a 1:17 rate. SNX will then be subject to a three-month lock-up starting on Nov. 15, followed by a nine-month linear vesting period. The KWENTA token will be deprecated thereafter.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (1).jpg

Research

With $13B in tokenized assets, strong institutional partnerships, and a clear first-mover advantage in the RWA space. The platform's methodical approach to regulatory compliance, coupled with its hybrid public-private architecture, positions it uniquely to capture significant market share in the emerging tokenization landscape. While current fee generation primarily stems from metadata transactions, the planned launch of Figure Markets, major exchange listings, and comprehensive market-making initiatives in 2025 could serve as powerful catalysts for growth.

article-image

Perena is built on the premise that as stablecoins proliferate, liquidity could fragment, and stablecoins aren’t useful if they aren’t liquid

article-image

From hackathons to trading tools and DAO governance, AI agents are redefining how we build and innovate

article-image

CME’s large bitcoin contracts are so big that investors are turning to micro bitcoin contracts

article-image

The third-largest stablecoin is going multichain for the first time in its seven-year history

article-image

Nano Labs’ news release notes confidence in bitcoin being “a reliable store of value amidst its rising global adoption”

article-image

Several big companies report third quarter earnings this week, likely moving markets