Kwenta builds on top of Synthetix to create a synthetic perpetuals trading platform. Traders on Kwenta trade futures against the liquidity provided by liquidity providers on Synthetix.

Kwenta is a non-custodial exchange for perpetual contracts built on Optimism. Kwenta was born out of the Synthetix community and launched in 2022.

KWENTA tokenholders own and govern the protocol. They currently do not take a cut of the total trading fees paid by traders (revenue).

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Kwenta

# Kwenta Revenue Methodology

## 1. Overview

Kwenta revenue represents the amount of revenue captured by the Kwenta protocol from its perpetual trading platform. Currently, this metric is calculated as zero because Kwenta operates as a frontend interface to the Synthetix perpetual futures protocol and does not capture any fees or revenue from trading activity. All trading fees are collected by the underlying Synthetix protocol, while Kwenta provides the user interface and trading experience without generating direct revenue.

## 2. Data sources

The methodology relies on several key data sources to track trading activity routed through Kwenta, even though no revenue is ultimately attributed to Kwenta:

- **Synthetix protocol events**: Parsed `PositionModified` events from Synthetix v1 and v2 perpetual trading contracts on Optimism that contain fee payment information
- **Tracking events**: Synthetix `FuturesTracking` and `PerpsTracking` events that include tracking codes to identify transactions routed through specific frontends
- **Market creation events**: Synthetix `MarketAdded` events from FuturesMarketManager contracts that define valid perpetual markets
- **External data**: End-of-day token price feeds for converting sUSD fees to USD values
- **Token metadata**: Information about sUSD token specifications including decimal precision

## 3. Step-by-step calculation

### Component A: Transaction identification
- **Purpose**: Identify perpetual trading transactions that were routed through Kwenta's frontend interface
- **Logic**: Filter Synthetix tracking events using Kwenta's specific tracking code (`0x4b57454e54410000000000000000000000000000000000000000000000000000`) to create a whitelist of transaction hashes. This tracking code is embedded in transactions when users trade through Kwenta's interface, allowing attribution of trading volume to Kwenta even though the underlying trades execute on Synthetix contracts.
- **Key fields**: `transaction_hash` for linking to fee events, `version` to distinguish between Synthetix v1 and v2 contracts

### Component B: Fee extraction
- **Purpose**: Extract the actual fee amounts paid in perpetual trading transactions attributed to Kwenta
- **Logic**: Join Synthetix `PositionModified` events with the whitelisted transactions from Component A. These events contain the `fee` field representing the trading fee paid by users in sUSD. Only include transactions that match both the transaction hash and contract version from the whitelist to ensure proper attribution to Kwenta-routed trades.
- **Key fields**: `fee` amounts in raw sUSD units, `block_timestamp` for temporal aggregation, `account_address` for market validation

### Component C: Market validation
- **Purpose**: Validate that fees come from legitimate Synthetix perpetual markets
- **Logic**: Join fee data with market creation events to ensure the `account_address` corresponds to a valid perpetual market contract. Parse market metadata including synthetic asset names from the market creation events. Handle special cases for OP and GBP markets using hardcoded asset addresses, while other markets decode asset symbols from hex-encoded bytes.
- **Key fields**: `market` addresses for validation, `synth_name` for market identification

### Component D: Currency conversion and aggregation
- **Purpose**: Convert sUSD fee amounts to USD and aggregate by day
- **Logic**: Apply decimal correction to convert raw sUSD amounts to proper decimal representation (dividing by 10^18). Convert sUSD amounts to USD using end-of-day exchange rates. Truncate timestamps to daily boundaries and aggregate total fees by day, chain, and product dimensions.
- **Key fields**: `fees` in USD after conversion, `timestamp` truncated to day grain, `chain_id` for Optimism

### Final calculation
- **Combining components**: All fee calculation components flow through to establish the base trading activity metrics that would typically inform revenue calculations
- **Revenue determination**: Despite calculating the underlying fee activity, the final revenue value is explicitly set to 0 for all records, reflecting Kwenta's business model as a frontend interface that does not capture fees
- **Time aggregation**: Daily aggregation maintains consistency with other protocol metrics while clearly showing zero revenue attribution
- **Final calculation**: Revenue equals 0 for all periods, indicating that while Kwenta facilitates significant trading volume and fee generation, none of those fees accrue to Kwenta as revenue - they flow entirely to the underlying Synthetix protocol

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

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Revenue

Revenue

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