This SIP proposes that Kwenta be formally transferred from a Synthetix project to an independent protocol.
Kwenta is a Synthetic asset trading platform powered by the Synthetix protocol that, to-date, has been designed, built, and managed by the Synthetix protocol. By formalizing Kwenta as a project no longer under the governance of Synthetix, Kwenta will have the dedicated focus and resources it needs to thrive and grow beyond what could be accomplished under Synthetix.
Kwenta is an iteration of synthetix.exchange, a Synth trading exchange made by the Synthetix Core Contributors for the purpose of showcasing the utility of the Synthetix Protocol. As Synthetix grew, it’s positioning became synonymous with synthetix.exchange which had the unintended side effect of ecosystem members categorizing Synthetix as a user-facing decentralized exchange instead of a building block in the Ethereum DeFi ecosystem. To remedy this misassociation, the Sythetix Core Contributors created Kwenta with the purpose of separating its branding from Synthetix, allowing Synthetix Core to more clearly communicate the value of Synthetix the protocol to developers while still offering a showcase for Synth utility. Although this strategy proved fruitful, Kwenta required more dedicated resources than Synthetix could offer as early designs went unimplemented, a backlog of changes built up, and new features that needed to be showcased (Ex. Futures) took priority. By making Kwenta an independent project, Kwenta will have the resources it needs to deliver on designs, meet user demands, and innovate to compete with other trading tools in the DeFi ecosystem.
If this SIP passes a number of other SIPs will then be proposed to formalise the governance processes for an independent Kwenta project.
To ensure Synthetix benefits from this transition, the Kwenta protocol will commit 35% of the initial supply to be distributed to Synthetix stakers and early synthetix.exchange/Kwenta users. The Sparten Council will not recognize the formation of Kwenta as legitimate unless this is done.
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