The decentralized finance exchange, Kwenta, is looking to reach new planes, as it plans the release of its own unique token, named the same as Kwenta itself.
According to a blog post issued on the 15th of June, Kwenta expressed its motives behind the move, explaining how the launch of the new token will contribute to Kwenta’s new intentions and benefit Kwenta users. The benefits do not come only for Kwenta users, as the blog post emphasizes that the launch will also provide benefits to stakeholders of Synthetix.
Kwenta and Synthetix
The Synthetix trading Exchange, ran using the Synthetix Defi Platform, was basically rebranded as Kwenta. Kwenta is meant for synthetix asset exchanging. Meanwhile, Synthetix is the protocol that helps it to function. Synthetix was having issues with branding, so it teamed up with the community members to give birth to Kwenta. Kwenta’s creation was meant to deliver an optimized experience when performing synth trading.
Developers at Synthetix have been moving forward to integrate Layer 2 Scaling solutions in the Synthetix protocol. As a result, the resources that were needed for Kwenta to run on full power were being used for the scaling solutions. So, to solve this issue, Kwenta was deemed as a separate project which would operate separately from the main Synthetix development.
As mentioned in the blog post posted by Kwenta, the launch of the token will have two main functions. The first function will help in the participation of governance, and the second function will be used for funding purposes and gaining profits in the long term. The token will also be used in working with communities for the hiring of a new development team, leading Kwenta to become a platform that would sustain itself on its own rather than depending on others. Having such a great communication level with the community will not only help out in the development of the token but will also increase its value among traders.
The full details regarding the launch have still not been shared, but the team working on the launch of the token have stated that the launch is to be expected in the summertime. As of now, there are currently no listings present for the Kwenta Token, but the new launch will surely change that.