Today, we are thrilled to announce our partnership with Kwenta, one of the biggest on-chain derivative trading platforms with more than $60B in volume and close to 1M trades. In collaboration with Brevis, Kwenta has just launched the world’s first ZK-powered derivatives trader loyalty program. This new feature trustlessly tracks the trading volume of Kwenta users in a rolling 30-day period and continuously rewards users with fee rebates based on the Brevis-generated ZK Proofs of their trading statistics. To celebrate the launch, users can enjoy hyper-boosted rewards and earn even more rebates for the first 30 days!
Try it out now on the Kwenta app.
Here is a quick video demo of this feature in action.
Introducing Kwenta’s trader loyalty program
The concept of a trader loyalty program (a.k.a “VIP program”) in an asset exchange platform is incredibly simple: the more volume you trade, the lower the fees. This is arguably the most effective way to increase the retention of high-volume traders, which often contribute to the majority of the revenue. Besides boosting the bottom line, VIP programs also help to create an ideal pricing structure for every trader, both big and small, because the differentiated fees allow professional market makers to build a more efficient market structure via cross-exchange arbitrages. This feature is especially useful in perpetual swap and derivative markets because those markets are often highly leveraged with no constraints of the underlying inventory.
Every centralized asset exchange (crypto or not) has this feature, no exception.
However, trader loyalty features simply did not exist in their decentralized counterparts since they are powered by blockchain smart contracts. The fundamental reason for this is that there was no way for smart contracts to trustlessly and efficiently access the historical trades of users and run any sort of complex computation on top of that data (Click here for more context).
Kwenta is here to change that as part of its mission to offer the best on-chain derivatives trading venue.
By using Brevis’s advanced ZK Coprocessor platform, Kwenta now can periodically compute users’ trading volumes off-chain based on the historical smart contract events emitted when the trades happened in the first place. The off-chain computed volume number is always accompanied by a ZK Proof, that proves both the input data validity (i.e. the trades actually happened) and the computation results (i.e. the trading volume by adding up all the trade amounts in individual events). The ZK Proof is then verified directly on-chain in the smart contracts and users will be able to claim their trading fee rebates based on their trading volume over the last 30 days.
Most importantly, this feature is end-to-end completely trustless: the entire data and computation attestation process is encapsulated in ZK and there is no trust in any third party, including Brevis and Kwenta. In short, this feature offers the same security level of the blockchain that Kwenta is deployed on, Optimism.
We are confident that this new feature will significantly improve the trading experiences on Kwenta and influence broader data-driven DeFi designs in the future.
Easy to build and simple to deploy
While the current focus is on continuous optimization of the newly launched trader loyalty feature, the potential for future collaborations between Brevis and Kwenta is immense. There are numerous opportunities for deeper integration, particularly in the development of perpetual futures mechanisms and other advanced trading features including automated and trustless yield generation features that can scale up the on-chain derivative market by 10x.
Both Brevis and Kwenta are committed to exploring these possibilities and pushing the boundaries of what is possible in decentralized finance. We are excited about the prospects of this partnership and look forward to bringing even more innovative solutions to the Kwenta platform in the future!
Looking ahead
While the current focus is on continuous optimization of the newly launched trader loyalty feature, the potential for future collaborations between Brevis and Kwenta is immense. There are numerous opportunities for deeper integration, particularly in the development of perpetual futures mechanisms and other advanced trading features including automated and trustless yield generation features that can scale up the on-chain derivative market by 10x.
Both Brevis and Kwenta are committed to exploring these possibilities and pushing the boundaries of what is possible in decentralized finance. We are excited about the prospects of this partnership and look forward to bringing even more innovative solutions to the Kwenta platform in the future!
About Kwenta
Kwenta is an on-chain derivatives marketplace on Optimism, Base, and Arbitrum. The platform offers easy-to-use tools to access deep liquidity and low fees on-chain, while users retain full custody of their funds. With over $50 billion in trading volume through its community-governed platform, Kwenta is committed to developing tools that bring DeFi to everyone.
About Brevis
Brevis is a smart ZK coprocessor that empowers smart contracts to read the full historical on-chain data from any chain and run customizable computations in a completely trust-free way.
Brevis can trustlessly read the states, transactions, and receipts of any time frame. It efficiently runs computations on data of any size: as the data to be proved increases in size, Brevis significantly reduces the per-unit cost and time for proof generation. Additionally, Brevis seamlessly verifies Zero-Knowledge (ZK) proofs on any blockchain, providing a unified and trustless user experience for dApps. Brevis empowers data-rich use cases, including data-driven DeFi, user-segment optimized live-ops features, ZKBridges, ZKDID, and smart-contract native risk control, all executed in a trustless manner across multiple chains.
Dive Deeper into Brevis:
🌐Website | 🗨️Telegram | 🐦X | 📘SDK Docs
Interested in building with Brevis? Reach out to us to explore ideas!
Brevis Network© 2023 