Kwenta
KWENTA
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
KWENTA is the governance token for the Kwenta decentralized perpetuals protocol on Optimism. Synthesizing the section evaluations reveals that the token is deprecated and has been merged into or acquired by Synthetix (SNX), with conversion contracts deployed to enable holders to migrate KWENTA for SNX. As a result, Active Development had insufficient data (-1.0) and was excluded from the weighted score calculation due to development on the standalone token ceasing. Community Support (2.5/10) and Market and Use Case (2.5/10) reflect severe drops in activity, characterized by near-zero trading volumes, minimal engagement, and micro-cap valuation. On the other hand, Tokenomics (6.5/10) historically possessed solid vesting and emission models, and Team and Governance (6.0/10) demonstrated structured democratic council governance. Security and Audit History (4.5/10) highlights an extensive audit pedigree (Macro, Iosiro, Omniscia, 0xCommit) and no direct smart contract exploits, though its score was capped at 5.0 due to an unrecovered severe price crash from ATH, alongside a weak partial CertiK score of 40.00 (C). Because KWENTA is deprecated and migrating to SNX, the token is rated Avoid.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Kwenta (KWENTA)
Kwenta (KWENTA) is a deprecated governance and staking token that has merged into Synthetix (SNX), with deployed conversion contracts allowing holders to swap KWENTA for SNX. Originally deployed on the Optimism Layer-2 network as well as Arbitrum and Base, Kwenta operated as a decentralized perpetual futures trading platform. It utilized Synthetix liquidity and debt pools to enable synthetic derivatives trading with up to 25x leverage, governed by an elected five-member council utilizing Kwenta Improvement Proposals (KIPs).
The token's economic design featured a four-year bounded inflation schedule, staking fee shares derived from protocol volume, and strict vesting mechanisms with early-vest penalties. In November 2024, Synthetix introduced an acquisition proposal to absorb Kwenta via a token exchange at a $13.2 million valuation. Following the merger, development on the standalone KWENTA token ceased, and the asset experienced a drop in economic activity, resulting in near-zero daily trading volumes and protocol fees.
Kwenta's smart contracts underwent security audits by firms including Macro, Iosiro, Omniscia, and 0xCommit, alongside an operational security review by Cantina, with no direct exploits reported against Kwenta's own protocol contracts. However, the protocol faced third-party integration risk in January 2024 when integrated infrastructure provider Socket suffered a ~$3.3 million token-approval exploit. KWENTA also experienced an unrecovered price crash exceeding 50% from its all-time high, declining to a micro-cap valuation alongside a partial "C" tier rating from CertiK.