KIP-133: Kwenta GMX Integration

Summary

This proposal is to enable Kwenta to integrate its GMX V2 on Arbitrum into its front end, creating a growth opportunity for both and adding the deepest open interest markets to Kwenta.

Abstract

This proposal seeks to have Kwenta, a decentralized derivatives trading aggregator, integrate with GMX, a leading decentralized derivatives trading platform on Arbitrum.

The integration aims to leverage Kwenta’s trading interface with GMX v2 deep, liquid markets to create a seamless and efficient on-chain trading experience. By combining the strengths of both platforms, this integration will enhance liquidity, improve user experience, and increase the overall trading volume on Arbitrum.

Motivation

The integration of Kwenta with GMX is motivated by several key factors:

• Enhanced User Experience: By integrating Kwenta’s intuitive and user-friendly trading interface with GMX's robust trading infrastructure, Kwenta users benefit from aggregating some of the deepest on-chain liquidity in DeFi, lowering order slippage, allowing for larger trade size, and lower fees for traders.
• Increased Liquidity: The integration will allow traders on Kwenta to access the deep liquidity pools of GMX, improving market depth and reducing slippage for larger trades.
  • E.g: .35% slippage on a 24M order on ETH currently,
  • .20% slippage on a 20M BTC order
  • This will vary on how the pools are balanced
• Expanded Market Reach: Combining the user bases of Kwenta and GMX will increase the number of active traders on both platforms, achieving a larger and more dynamic trading community on Arbitrum.
• Strengthening the Arbitrum Ecosystem: As both Kwenta and GMX operate on the Arbitrum network, their integration will further solidify Arbitrum’s position as a leading hub for DeFi activities. This synergy will attract more projects and users to the Arbitrum ecosystem, contributing to its growth and success.

Specification

For more information, visit the: Kwenta State Log