Synthetix – the leading derivatives protocol – has showcased its newest exchange product called Kwenta, providing slippage-free trading of derivative tokens.


What is Kwenta?

Kwenta leverages Synthetix’s pooled-liquidity protocol, allowing users to trade synthetic commodities, equities, cryptocurrencies, and more, all with “infinite” liquidity.

Kwenta has a sleek and simple user interface, which benefits from the absence of order books and depth charts. Instead, users see price charts for each of the two assets they are trading between, as well as an exchange window that is similar to that of Uniswap.

The exchange is completely non-custodial, requiring the use of a web 3.0 wallet such as Metamask.

Kwenta currently facilitates the trading of three different classes of derivatives including cryptocurrencies, forex, and commodities such as gold and silver. A fourth tab exists for equity derivatives, however there are not yet any of these available for trading.

Gas fees are unfortunately somewhat high, due to the complexity of the Synthetix protocol. However, users can enter a contest to subsidze those feels by shilling Kwenta on Twitter!


Restriction to Synths

Al trading on Kwenta must be performed between Synthetix derivatives – known as “Synths” – due to the way the protocol works.

To make things easier for new users, Kwenta provides an easy on-ramp for ETH holders via a 1inch integration, enabling a quick switch from ETH to Synthetix’s main stablecoin, sUSD.

From here, users can trade between Synths quickly and easily, with almost unlimited liquidity.

Synthetix Layer 2

Synthetix is a permissionless derivatives protocol enabling the issuance and exchange of synthetic assets. It recently debuted its layer two integration with Optimism, a program that is ongoing today and allows users to stake SNX to claim issuance and trading fees with little to no gas costs.

Unfortunately, these solutions are only live on testnet today, meaning Kwenta is still subject to high gas fees in times of volatility.

Still, Synthetix’s continued commitment to user experience and the gradual evolution of its Synth products speaks to the vibrant ecosystem the leading derivatives protocol looks to incubate in the coming year.

To stay up with Kwenta, be sure to follow the project on Twitter.