Research Summary
The report discusses the recent developments of Kwenta, a frontend for Synthetix Perps V2 on Optimism. The key development is the activation of a “fee switch” through SIP-2002, which allows Kwenta to receive a share of all fees it generates. This has resulted in significant revenue for Kwenta, with retroactive payments for March and April totaling almost $300,000. The report also highlights the potential for Kwenta to become a major player in on-chain perps trading, given its attractive features for traders and the growing narrative around on-chain perps.
Actionable Insights
- Fee Revenue: Kwenta has started receiving a share of all fees it generates, leading to significant revenue. This new source of revenue could provide a sustainable and potentially lucrative stream for the platform.
- Trading Rewards Program: A trading rewards program is now active, offering substantial rewards to traders based on fees paid. This could attract more traders to the platform.
- Competitive Advantage: Kwenta’s features, such as its funding rate and lack of spreads and low fees, make it more attractive to traders compared to other platforms. This could help Kwenta compete in the on-chain perps trading space.
- Future Prospects: With the increasing interest in on-chain perps and the loss of trust in centralized exchanges, Kwenta is well-positioned to benefit from this trend.
