This is a segment from the 0xResearch newsletter. To read full editions, subscribe.
In early October, Synthetix passed an ambitious governance proposal to “reboot” the entire project. Major changes proposed included the likes of revamping SNX tokenomics, introducing a SNX-backed stablecoin, launching on Ethereum mainnet and Solana and redesigning the Synthetix frontend.
As part of that overhaul, SIP-411, which passed yesterday with 6/6 votes from Synthetix councilors, is reacquiring Kwenta as a frontend and bringing it back as part of Synthetix’s relaunch.
Kwenta was once a Synthetix project. Spun out in 2021 as a dedicated frontend for Synthetix to operate independently as per SIP-179, it is now referred to by Synthetix co-founder Kain Warwick as “unequivocally a terrible idea.”
Benjamin Celermajer, Synthetix’s strategy seat, said of the acquisition: “Bringing Kwenta back into Synthetix will unify the vision, the roadmap and the strategic priorities of both protocols. This will help Synthetix provide the best possible user experience to its community of traders and a seamless integration experience to the various protocols that utilize Synthetix liquidity.”
As part of SIP-411, KWENTA token holders will be able to exchange their KWENTA to SNX at a 1:17 rate. SNX will then be subject to a three-month lock-up starting on Nov. 15, followed by a nine-month linear vesting period. The KWENTA token will be deprecated thereafter.
Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.
Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.
Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.
The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.
Source: https://blockworks.co/news/synthetix-protocol-reacquires-kwenta