Synthetix Acquires Kwenta, the Leading Perpetual Trading Platform in Its Ecosystem

Approved by SIP-411 by the Spartan Council and KIP-138 by the Kwenta Council, this strategic purchase is carried out via a token-for-token transaction.

Cryptocurrency derivatives exchange Synthetix is acquiring Kwenta, a platform for perpetual trading, in a move that will see Synthetix regain control of its front-end activities.

The acquisition, which was approved by the Spartan Council with SIP-411 and the Kwenta Council with KIP-138, will see Kwenta traders’ assets automatically converted from KWENTA to SNX tokens. The acquisition is part of a larger strategy by Synthetix to enhance user experience and brand presence.

“This acquisition marks the first major strategic step post-referendum and will see Synthetix regain ownership of its ecosystem-leading front end in a bid to expand offerings and market share,” Synthetix announced in a recent blog post.

The separation of Kwenta in 2020 allowed for a focus on building a best-in-class trading interface for derivatives markets. However, the creation of the KWENTA token introduced another set of goals within the Kwenta community, impacting the overall alignment with Synthetix’s mission.

With the two platforms now working towards a common objective, the dedicated contributors from Synthetix and Kwenta will combine their expertise to accelerate the introduction of enhancements and new trading tools, streamlining product releases.

The unification of the front end also marks a shift in branding, with a centralized Synthetix front end set to enhance market awareness and foster greater brand loyalty among crypto enthusiasts.

The integration of Kwenta’s community into the broader Synthetix collective will foster a strong and engaged fan base, enhancing the brand’s cohesiveness and engagement across the ecosystem.

The move will also see the management of two different assets simplified and liquidity concentrated on SNX tokens, bolstering its performance in the market.

“As capital naturally flows into one token rather than two, this consolidation could drive greater inflows,” Synthetix noted in the official statement.

The acquisition will further enable Synthetix to expand its offerings in the B2B space. Previously focused on providing infrastructure and liquidity, the role of Synthetix as an integrator will now provide a more comprehensive toolkit for new developers looking to build their own perpetual trading platforms.

This integration is expected to save time and resources for launching new derivative exchanges powered by Synthetix, adding another layer to its service offerings and solidifying its impact in decentralized finance (DeFi).

In other news, Synthetix is introducing USDx liquidity opportunities on the Arbitrum network, CNF reported.

Ahead of the upcoming Synthetix Perpetuals (Perps) launch, and in a bid to stimulate user engagement and capital flow, Synthetix has allocated 3,000 SNX in weekly incentives for liquidity providers on Arbitrum.

Meanwhile, SNX tokens are trading hands at around $1.58 at the time of writing, with a market cap of over $500 million, up 4.90% over the past 24 hours and 14.05% over the past 7 days.