Trading Rewards

With the launch of our v2 perps engine, stakers will now earn $KWENTA token rewards for both staking and trading. Holders of liquid $KWENTA tokens may also have the opportunity to earn incentives as liquidity providers. All these opportunities are now accessible from your Kwenta dashboard alongside other features available on the Kwenta exchange. Let’s dive in and learn how to stake, how to claim, and how to earn.

Earning Trading Rewards

Kwenta stakers are eligible for a share of 5% of all inflationary rewards, which are earned by paying trading fees. To become eligible for a share of these rewards, users must:

• Have any amount of $KWENTA staked

• Place a futures trade on Kwenta (https://www.kwenta.eth.limo)

That’s it! If both of these conditions are met before the end of each epoch, you’ll be eligible for trading rewards.

Claiming Trading 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.

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:

Individual stakers trading rewards are then evaluated as follows:

Fees and staked $KWENTA are weighted with a configurable value, currently set at 0.7, adding extra weight to trading fees paid.

Once the epoch is complete, trading rewards will appear as claimable on the left side of the trading rewards page. Once the epoch ends, these rewards will keep accumulating until claimed. Like other staking rewards, these rewards are claimed as escrowed rewards and follow the same unlock schedule.

Remember to stake your rewards after you claim!