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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 Synthetixs 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, Synthetixs 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.