KIP-26: Kwenta Sovereignty Phase Update

Author
StatusApproved
Created2022-08-08

Summary

Propose and put in place a continuation plan for the previously proposed Sovereignty phase laid out in KIP-10. Kwenta will host a campaign to facilitate the launch of the Kwenta token.

Abstract

The Kwenta Sovereignty Phase will include liquidity mining rewards, a Futures competition, and other opportunities to obtain KWENTA.

Motivation

The purpose of the original sovereignty phase campaign remains and is to amplify the launch of Futures, Kwenta mobile design, cross margin, complex orders, and the Kwenta token, resulting in DAO growth and increased product usage.

Specification

The Sovereignty Phase will take place over the course of 6 weeks:

Week 1-2 (Complete)

The Kwenta Sovereignty Phase began on February 14th with the launch of the KWENTA Aelin raise as per KIP-9 and has been completed.

Week 3 (Oct 3rd - Oct 10th)

On Monday, October 3rd, Round 1 of the Futures competition will commence. The week-long competition will be held where participants will compete to generate the most amount of PnL calculated as a normalized percentage with Kwenta’s Futures product, working their way as high up the leaderboard as possible.

The round one prize pool will include 144 KWENTA:

  • 1st place: 15 KWENTA + Rare Kwenta NFT
  • 2nd place: 10 KWENTA + Rare Kwenta NFT
  • 3rd place: 5 KWENTA+ Rare Kwenta NFT
  • 4th-20th place: 2 KWENTA
  • 21st-100th place: 1 KWENTA

All active participants will be eligible for a POAP as well.

Week 4 (Oct 10th - Oct 17th )

On Monday, October 17th, a second round of the Futures competition will be held where everyone starts on equal footing. By hosting a second round the following week, people who found out about the Futures competition late will be able to still participate without being at a disadvantage. The week-long competition will be held where participants will compete to generate the most amount of PnL calculated as a normalized percentage with Kwenta’s Futures product, working their way as high up the leaderboard as possible.

The round two prize pool will include 1595 KWENTA:

  • 1st place: 250 KWENTA + Rare Kwenta NFT
  • 2nd place: 125 KWENTA + Rare Kwenta NFT
  • 3rd place: 75 KWENTA + Rare Kwenta NFT
  • 4th-20th place: 5 KWENTA
  • 21st - 100th place: 2 KWENTA
  • 101st - 1000th place: 1 KWENTA

All active participants will be eligible for a POAP as well.

Week 5 (Oct 24th - Oct 31st)

Kwenta V2 will launch trading rewards. Rewards will be computed off-chain and sent out after the end of the month through a distribution contract.

Week 6 (Nov 1st - Dec 1st)

The Kwenta token will launch and be claimable on L2 for SNX stakers and Synth traders. Pool contributors that participated in the Aelin raise and received $vKWENTA as outlined in KIP-9, will be able to redeem their $vKWENTA for $KWENTA now. All rewards earned during the Sovereignty Phase will be distributed to participants on November 1st, when the token officially launches, with the exception of ongoing LP rewards.

Kwenta/ETH Pool

The release of the $KWENTA token is an exciting moment for the Kwenta DAO. Upon launch, there needs to be both fee capture from trades as well as liquidity available for the token. LP rewards will be available for those that contribute to the Optimism Uniswap V3 $KWENTA/ETH pool for the next four weeks. Therefore, we are going to reward those LPs utilizing full range positions, similar to a V2 Uniswap pool. Liquidity incentives will be reviewed at the end of the initial period and either continued as is, adjusted, or discontinued. 783.43 KWENTA will be available for this opportunity.

Pool Details:

  • Pool: $KWENTA/$ETH
  • Fee Tier: 1%
  • Reward: 0.25% of the initial supply (783.43 KWENTA)
  • Start: November 1st, 2022
  • End: December 1st, 2022
  • minPrice: 0
  • maxPrice: Infinity

Council Elections

Marking a significant shift in Kwenta Governance, the first $KWENTA token vote will be available on Snapshot once the token goes live. Kwenta utilizes a delegative governance structure, where a council of 5 representative council members vote to make decisions on behalf of the DAO by voting on KIPs on behalf of $KWENTA holders. See KIP-24 for more details.

Copyright and related rights waived via CC0.