Kwenta is a new trading application leveraging Synthetix’s unique peer-to-contract (P2C) trading model.
Synthetix core contributors and community agreed that Synthetix.Exchange did not offer the intuitive and seamless trading experience that the protocol could support. So the core contributors set out to build a new exchange from scratch with an emphasis on a smooth user journey for experienced traders.
The biggest benefit with trading derivatives on Kwenta is you can trade with infinite liquidity and zero slippage. The P2C model means traders don’t have to fight the limitations of an order book, like worrying about their orders filling or suffering from slippage—something that big traders endure when trading on CEXs or AMMs.
Traders also have the ability to hold short positions without interest rates or hidden fees. Given Kwenta is a web3 dApp compatible with a range of different wallets, anyone can trade with deep liquidity without needing to entrust custody of your funds to a third party!
There’s also a sleek Dashboard giving traders an overview of their trading history and balances, as well as the ability to purchase Synths with ETH if they don’t hold any Synths yet.
The full launch of Kwenta includes all of the derivatives (Synths) enabled by Synthetix, for a total of 42 assets including forex, cryptocurrencies (long and short), commodities, equity indices like the NIKKEI and FTSE, and custom indices like the DeFi index which provides a basket of the most popular DeFi tokens on the market.
Here’s how you can onboard to Kwenta and start trading immediately:
1. Head over to Kwenta.io and connect your wallet. Kwenta supports Metamask, Ledger, WalletConnect, Portis, Trezor, Dapper, WalletLink, Torus, and Authereum.
2. Once you’ve soaked up as much information as you like from the landing page, press the gold “Start trading” button in the top-right corner.
3. Get some Synths in your wallet to start trading (like sUSD). If you don’t have any, the UI will advise you of this and guide you to the Dashboard, where you can purchase sUSD with ETH without leaving Kwenta (it uses 1inch).
4. Once you’ve got some sUSD (or another Synth) in your wallet, you’ll be guided back to the Exchange page. From there, you can make a trade by using the dropdown to select the Synth you’ll trade out of, and then which Synth you wish to trade into.
There are a bunch of categories to choose from — stuff like crypto, forex, equities, and commodities. You can also take a look at the responsive graphs demonstrating each asset’s recent performance.
5. Once you’ve executed the transaction, you’re all done and the trade is complete! Please note there’s a 10 minute waiting period after each trade.
Kwenta leverages Synthetix to provide traders with permissionless exposure to a range of synthetic assets. You can open a position on gold or silver through sXAU or sXAG, or get exposure to a basket of DeFi tokens via sDEFI. And the possibilities are constantly growing.
There will be plenty of new features added to Kwenta in the coming few months, including support for any new trading functionality Synthetix launches, including synthetic futures, Synthetix loans, and limit orders.
- DerivativesA derivative is a contract or product whose value is determined by an underlying asset. Currencies, exchange rates, commodities, stocks, and the rate of interest are all examples of derivative assets. The buyer and seller of such contracts have directly opposed predictions for the future trading price.
- Derivative (finance)Financial instrument whose value is based on one or more underlying assets
- Derivatives market
- BlockchainA blockchain is an append-only digital ledger storing a set of time-ordered transactions grouped in blocks that are linked together using cryptographic hashes.
- CryptocurrencyA cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.
- Decentralized Finance (DeFi)DeFi is short for "decentralized finance," an umbrella term for Ethereum and blockchain applications geared toward disrupting financial intermediaries.
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