Earning Kwenta Rewards - Kwenta

Update: KIP-70 incentives have now ended. Non-stakers currently earn $OP rewards under the program described in this blog, but only stakers earn $KWENTA rewards. Please stay tuned to future adjustments and opportunities for non-stakers to earn rewards.

To be eligible for $KWENTA rewards, simply stake any amount of $KWENTA. This blog has been updated to reflect the latest calculations.

Earning Trading Rewards

All traders who stake $KWENTA are eligible for a share of 5% of all inflationary rewards, which are earned by paying trading fees. All trades placed on https://www.kwenta.eth.limo or https://www.kwenta.io will qualify for rewards.

Traders can increase their rewards two ways:

Pay additional fees by trading larger volume, or on markets with higher fees
Stake $KWENTA, or increase the amount of $KWENTA staked

Using both methods in tandem will allow a trader to scale their trading rewards allocation.

Calculating Rewards

Trading rewards are calculated and become claimable at the end of each epoch. The epoch countdown clock resets each week when rewards become claimable. After each epoch ends, you can continue trading to earn rewards for the next epoch.

To see your current qualifying fees paid during the epoch, navigate to the “Trading Rewards” section of the Staking UI.

Check here for an estimated reward, which changes as trades are made

Total rewards are decided at the end of each epoch based on a traders rewards score. The rewards score increases as more $KWENTA is staked, and as more trading fees are paid, according to the formula below:

Fees and staked $KWENTA are weighted with a configurable value, currently set at 0.7.

Claiming Rewards

Once the epoch is complete, trading rewards will appear as claimable on the left side of the trading rewards page. Rewards do not expire, but must be claimed in order to stake. All rewards are claimed as escrowed rewards and follow the same unlocking schedule. Remember to stake your rewards after you claim!

Escrowed $KWENTA follows a 1 year linear unlock schedule. Escrowed tokens may be claimed early by burning a portion of rewards. The penalty decreases linearly over the 1 year vesting period.

These rewards do not expire but do not begin vesting until claimed.

Acquiring $KWENTA

Staking additional $KWENTA will increase your share of rewards. Conveniently, the best liquidity for the $KWENTA token is available right on Kwenta under Exchange.

SynthSwap finds you the best price on any synth or erc20 swap

Aside from purchasing liquid tokens from an exchange, you may be able to acquire either escrowed or liquid tokens from onboarding incentives and promotions, compensated DAO roles, bounties, or similar opportunities. Once you have your tokens, it’s time to stake.

Staking $KWENTA

Since there is currently no cool down period for unstaking and no market exposure or additional risk from staking your tokens, it’s best to keep all your tokens staked unless you’re preparing to sell or transfer your $KWENTA.

Under the current system, you must stake some amount of $KWENTA to earn rewards from trading. Both liquid and escrowed $KWENTA will earn rewards at the same rate, but must be staked separately.

To stake any unstaked $KWENTA, first locate your tokens in the Staking UI.

Liquid $KWENTA can be found under “Staking”, and escrowed $KWENTA can be found under “Escrow”. You may have a balance available in both tabs.

If you are staking rewards earned from trading, be sure to find them under the Escrow tab

Although it’s possible to fill in a custom amount to stake, most users will want to stake their entire amount. To fill in the entire amount, simply click on the balance, and hit “Stake”.

Most users will want to stake their entire balance

Congratulations! You’re now earning escrowed $KWENTA tokens from staking rewards. Please be aware that all staking and trading rewards follow the same escrow schedule, which will be covered later in this guide. For more detailed information about the staking page, see the Kwenta documentation.

Additional Questions?

Information in this blog will help you to maximize your $KWENTA rewards, but we’re always happy to help if you need additional information. For more info, come visit us in Discord.

Please be aware our incentive programs may be discontinued or changed without warning. For the most up-to-date information, please follow live announcements on Discord and Twitter.

Happy trading!

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