Kwenta Partners with Perennial on Arbitrum - Kwenta

In a landmark move for Kwenta’s derivatives exchange, Kwenta is thrilled to announce its recent governance decision to embark on an exciting new journey with Perennial, leveraging the power of Arbitrum. This partnership serves as a first step to explore derivatives aggregation, and turn Kwenta in to a one-stop derivatives powerhouse.

What is Perennial?

Perennial is an ambitious derivatives liquidity protocol on Arbitrum which aims to achieve high capital efficiency on a wide variety of markets. With its V2 launch on Arbitrum, Perennial has redefined capital efficiency, enabling $1M in Total Value Locked (TVL) to support $5M-$10M in open interest. High efficiency, and a modular, feature complete platform makes Perennial valuable resource in the Arbitrum ecosystem.

Kwenta’s partnership with Perennial was approved through Kwenta’s governance process and prepares the way for Kwenta and Perennial to collaborate on novel derivatives including markets on traditional assets, NFTs, and power perpetuals. By staying at the forefront of perps innovation, Kwenta and Perennial can quickly establish one of the best decentralized perps trading experiences.

Why Arbitrum?

Arbitrum has solidified its status as a leading Layer 2 solution, renowned for its scalability and efficiency. By moving to Arbitrum and integrating with Perennial, Kwenta is not just expanding its ecosystem; it's tapping into a vibrant community eager for innovative DeFi solutions. The timing aligns perfectly with Arbitrum's growth phase, further incentivized by the STIP program, promising a fertile ground for Kwenta's expansion.

A Proactive Partnership

A core advantage of Kwenta’s partnership with Perennial is the willingness of the Perennial team to form a close working relationship with our contributors at Kwenta. One of the principle pain points of a project like Kwenta’s which aims to integrate and manage multiple partners is the challenge of coordinating across teams of builders. Perennial’s commitment to mutual support spans several areas.

Development Resources:

Comprehensive Developer Support: Kwenta has access to a wide array of development resources from Perennial, including front-end, backend, and smart contract developers to ensure the integration is achieved swiftly and smoothly.
SDK Development: An SDK is being developed by Perennial, keeping Kwenta's integration needs in focus, aimed at simplifying and streamlining both the initial integration process and future enhancements.
Mechanism Design with Kwenta Traders in Mind: Collaborative mechanism design efforts to ensure developments are closely aligned with the needs and feedback of Kwenta traders, enhancing user experience and platform responsiveness.
Exploration of Permissionless Markets: Perennial aims to allow the future development of permissionless markets, which would allow Kwenta to independently innovate and expand the range of financial products available to traders.

Economics:

35% Fee Share: Kwenta receives a 35% share of the base trade fees generated from the volume originating on its platform, providing a significant economic benefit from the partnership.
750k ARB as a STIP Grant: Perennial has been chosen to receive 750k ARB as a STIP grant, which they can use to foster growth.

A Leap Forward

Integrating Perennial is a first step toward establishing Kwenta as a multichain perps aggregator working with the best teams in the space to source liquidity for traders, and build powerful tools on top. By aggregating multiple liquidity sources, Kwenta traders will have access to the most diverse markets, the deepest liquidity, the best pricing, and simple arbitrage opportunities.

While perps in DeFi today are treated as isolated venues for directional trading, Kwenta knows that the future means combining high performance, capital efficient derivatives with the flexible and composable DeFi infrastructure we’ve come to expect from spot swaps today. There are many steps along the road to realizing this vision, but today we invite you to walk with us and our partners at Perennial.

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