The transaction fee reached a new high, and the giant whale made a profit of nearly 10 million. Why did the derivatives trading platform Kwenta become popular?

特邀专栏作者

2023-04-03 11:00 (UTC+8)

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Recently, the trading volume of Synthetix has been rising, most of which come from Kwenta, the front-end of Synthetix derivatives.

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Recently, the trading volume of Synthetix has been rising, most of which come from Kwenta, the front-end of Synthetix derivatives.

Original author:vanillacream.eth, encrypted KOL

Original Compilation: Felix, PANews

While you focus on the airdrop, Kwenta’s transaction fees hit an all-time high of $370,000 a few days ago. Whales like Mechanism Capital founder Andrew Kang made nearly $18 million in profits on leveraged trades with GMX and Kwenta.

Transaction fees hit a new high, why does Kwenta, a quick glance at the derivatives trading platform, become popular?

What is Kwenta

Kwenta is a decentralized derivatives trading platform powered by Synthetix. Kwenta traders can trade against the Synthetix debt pool, which consists of sUSD provided by SNX stakers.

Synthetix Perp V2

V2, the debut of Synthetix, improves uncapped open interest, asset compatibility, and execution fees with a new off-chain oracle system and an adjusted funding rate mechanism. Helps increase transaction volume and transaction fees on Kwenta, the front-end for Synthetix Perps (derivatives). Let's take a deeper look at Perp V2.

Perps V2 is an upgraded version of Synthetix designed to reduce gas fees, improve scalability and capital efficiency. This upgrade includes 2 major updates to revolutionize the trading experience:
new charging model

Faster oracles

new charging model

Unlike traditional funding fees on centralized exchanges, funding fees in Perps V2 dynamically adjust over time to incentivize a balance between short and long positions. Make sure traders pay or receive funds fairly based on market demand and supply.

Faster oracles

Perps V2 introduces a new kind of oracle, the Pyth Network's oracle, which offers a range of advantages over Wormhole data transmission. These advantages include:
More real-time oracle price feed

Eliminate front-running and arbitrage opportunities

index

Thanks to Perps V2, Kwenta has seen a huge increase in transaction volume over the past 30 days. Of this, transaction fees have topped $2.5 million, most of which were recently contributed, demonstrating the success and potential of the platform.