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

With this acquisition, Synthetix aims to take back control over its front-end activities, which are essential for its endeavor to improve user experience and brand presence.

Cryptocurrency exchange Synthetix announced Monday the acquisition of Kwenta, a leading decentralized perpetual trading platform in its ecosystem.

The acquisition, approved by SIP-411 by the Spartan Council and KIP-138 by the Kwenta Council, will see Synthetix take over Kwenta’s front-end activities in a token-for-token transaction.

The move marks the first major step post-referendum for Synthetix, according to a recent announcement on the official Synthetic blog.

The acquisition of @Kwenta_io by Synthetix is underway in the first major strategic move since the referendum.

Synthetix will regain ownership of its ecosystem-leading front end in a token-for-token transaction in a bid to expand offerings and market share.

Full details ⬇️… pic.twitter.com/wirwXTnLoZ

— Synthetix ⚔️ (@synthetix_io) November 8, 2024

The acquisition is aimed at enhancing the capabilities and competitive edge of decentralized derivatives exchanges.

Reclaiming Front-End Control to Strengthen User Experience and Brand Unity

With this acquisition, Synthetix aims to take back control over its front-end activities, which are essential for its endeavor to improve user experience and brand presence.

Combining Kwenta’s front end with Synthetix’s protocol will help the project bring together the strategic objectives that have lately separated the two platforms.

Synthetix underlined that the division of Kwenta in 2020 allowed for a focus on establishing a top-tier trading interface for derivatives markets, but the development of the KWENTA token introduced other aims inside the Kwenta community, therefore affecting the general alignment with Synthetix’s mission.

The main advantage of this transaction is the combination of the knowledge of both teams. Now working under a shared goal, the committed contributors from Synthetix and Kwenta will: This alignment seeks to hasten Synthetix’s introduction of enhancements and new trading tools and simplify product releases.

Furthermore, as stressed in the blog announcement, the unified branding effort with a centralized Synthetix front end is expected to increase market awareness and brand loyalty among crypto enthusiasts.

Unifying Community and Liquidity for Stronger DeFi Impact

Moreover, underlining Kwenta’s community under the Synthetix umbrella is expected to produce a strong collective of fans, thereby improving the brand’s cohesiveness and ecosystem involvement.

The change from KWENTA to SNX tokens simplifies the management of two different assets and concentrates liquidity on SNX, therefore improving its market performance. Synthetix underlined in the official statement that as capital concentrated in one token usually results in higher performance, the consolidation could drive more major liquidity inflows.

Getting Kwenta will also help Synthetix with B2B products. Synthetix used to mostly provide infrastructure and liquidity, but now, as an integrator, it can give a better toolbox for new developers hoping to build their own perpetual trading platforms.

This integration is projected to save time and money needed for starting Synthetix-powered new derivative exchanges, therefore providing a fresh dimension to its service offers and confirming its impact in decentralized finance (DeFi).

On the other hand, Synthetix has unveiled USDx liquidity prospects on the Arbitrum network, according to a CNF report. With an eye toward user engagement and capital flow ahead of the forthcoming Synthetix Perpetuals (Perps), Synthetix has set 3,000 SNX weekly incentives for liquidity providers on Arbitrum.

Meanwhile, with a market cap exceeding $500 million, SNX tokens are swapped hands at about $1.58 at the time of writing, having increased 4.90% over the last 24 hours and 14.05% over the last 7 days.