Synthetix’s Kwenta exchange has announced the launch of the L2 Kwenta Alpha on Optimistic Ethereum. The team says the L2 Alpha will enable both Synthetix and Kwenta users to learn more about trading synthetic assets on L2, while also enjoying up to 50x cheaper transaction fees, according to a blog post on July 30, 2021.
Kwenta Live on Optimism
Kwenta, a decentralized exchange (DEX) powered by DeFi infrastructure provider, Synthetix, is now live on Ethereum Layer-2 network Optimism. Dubbed the L2 Kwenta Alpha, the team says the move is a huge milestone for the entire Synthetix ecosystem.
As stated in a blog post, the team expects the Kwenta L2 Alpha launch on Optimistic Ethereum to serve as an opportunity for both the Kwenta and Synthetix communities to gain a better understanding of Synthetic assets trading on layer-2.
Kwenta users will initially be able to trade only a handful of synths on L2 during phase one of the rollout, including sUSD, sETH, sBTC, and sLINK, with the trading fees set at 0.4 percent.
“The Synthetix community will monitor early L2 performance and then gradually vote in additional synthetic assets as they see fit. Once enough Synths have been added to offer users a meaningful trading experience on L2, the next phase of the L2 launch Plan will come into effect where trading incentives will be added to L2 Kwenta.”
Optimism is an Ethereum layer-2 scaling solution that aims to enable dApps to overcome the scalability bottlenecks of the latter. It leverages optimistic rollup technology to offer users lightning-fast transactions with minimal fees.
With the launch of Kwenta on Optimistic Ethereum, the team expects users to start enjoying an estimated 50X reduction in gas fees and blazing fast transaction speeds. However, like all new technologies, the team has advised users to move with caution, as there may be network glitches during this first testing phase.
“It’s important to note that we expect to encounter downtime and potentially unforeseen challenges. The data we collect from the Alpha will enable us to optimize Synth trading on L2 and prepare for the beta launch,” Kwentta added.
In related news, Kwenta announced earlier in June that it is making plans to roll out its token dubbed $KWENTA, in a bid to give the project more independence.
On July 27, 2021, BTCManager informed that layer-2 scaling solution and decentralized exchange, ZKSwap, has launched the second iteration of its network, to enable it to support other blockchains and tokens aside from Ethereum.