Synthetix Reacquires Kwenta to Strengthen Strategic Vision
Synthetix has reacquired Kwenta, aiming to unify their strategies and enhance user experience as part of a broader protocol overhaul.
In early October, Synthetix passed a significant governance proposal aimed at rejuvenating the entire project. Key changes proposed included:
- Revamping SNX tokenomics
- Introducing a SNX-backed stablecoin
- Launching on Ethereum mainnet and Solana
- Redesigning the Synthetix frontend
As part of this overhaul, SIP-411 was approved with unanimous support from Synthetix councilors, leading to the reacquisition of Kwenta as a frontend for Synthetix’s relaunch.
Background on Kwenta
Kwenta was initially a project under Synthetix but was spun out in 2021 to operate independently following SIP-179. Synthetix co-founder Kain Warwick has since referred to this separation as “unequivocally a terrible idea.”
Strategic Vision for the Future
Benjamin Celermajer, Synthetix’s strategy lead, commented on the acquisition, stating:
- "Bringing Kwenta back into Synthetix will unify the vision, roadmap, and strategic priorities of both protocols."
- This move aims to enhance the user experience for traders and ensure seamless integration for protocols utilizing Synthetix liquidity.
Token Exchange Details
As part of SIP-411, KWENTA token holders will have the opportunity to exchange their tokens for SNX at a rate of 1:17. The SNX received will be subject to:
- A three-month lock-up period starting on November 15
- A nine-month linear vesting period thereafter
Following this transition, the KWENTA token will be deprecated.
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