KwentaMicro-cap

Kwenta receives a B- risk grade (34/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — fully dependent on Synthetix infrastructure, which has a history of oracle exploits and debt pool stress events A perpetual futures trading platform on Optimism where your trades settle against the Synthetix debt pool, meaning every trade's risk is shared across all SNX stakers. It holds $50M in deposits. Its C+ grade reflects total dependency on Synthetix for liquidity, historical oracle front-running losses, and loss of independent governance after being acquired by Synthetix.

The key risks identified for Kwenta are: (1) All your trades settle against the Synthetix debt pool. If one big trader makes a fortune, every SNX staker pays for it, and liquidity can shrink overnight. (2) Traders have exploited delays in price feed updates to make risk-free profits. These losses come directly out of SNX stakers' pockets. (3) Kwenta was acquired by Synthetix and lost its independent governance. The KWENTA token is being deprecated, and a 6-person council now makes all decisions.

Kwenta scores 34/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 8/20, Oracle Surface: 3/10, Documentation Gaps: 2/10, Track Record: 5/15, Scale Exposure: 3/10, Regulatory Risk: 3/10, Vitality Risk: 7/10. The highest risk area is Vitality Risk at 7/10.

Among 53 rated Derivatives protocols on Hindenrank, Kwenta ranks #16 by safety (lowest risk score = safest). Its 34/100 risk score and B- grade place it among the safer Derivatives protocols.

Kwenta scores 5/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.