How to Use Kwenta L2 on Optimism Kovan (Testnet)

10 September, 2021 — Platschi

The following article describes in detail how Kwenta can be used on the Optimism Kovan Testnet.

By using Optimism Kovan, you will be able to explore derivates trading on Kwenta, get familiar with the platform and test your setup.

At the end of this tutorial, you will know:

  • How to set up your MetaMask wallet for Optimism Kovan.
  • How to receive Kovan Testnet ETH (kETH).
  • How to transfer your kETH to Optimism using a Gateway.
  • How to swap your kETH for sUSD using Uniswap
  • How to access Kwenta L2 and trade risk-free on Kovan Testnet.

Why Optimism?

Optimism is a layer 2 scaling solution. By design, it aims to achieve a faster and higher throughput of transactions, while offering significantly lower (gas) fees. During this tutorial, you will experience the blazing-fast transaction speed of Optimism first-hand. To dive deeper into the technology behind it, check out this article and their community docs.

How to set up MetaMask for Optimism Kovan

This tutorial assumes that you are using the MetaMask browser wallet extension on a desktop.

Once logged in to MetaMask, follow below link to automatically add the Optimism Kovan Network to your wallet. On that website, click the green "connect" button. That's it!

The result should look like this, asking you to add the network to your wallet:

MetaMask Optimism kovan

In the list of networks, you should now see the Optimism Ethereum (Kovan) network. Congratulations!

How to receive Kovan Testnet ETH (kETH)

Let's get some Kovan Testnet ETH. First, set your MetaMask Network to Kovan Test Network. Head over to this Kovan Testnet Faucet (or faucet #2 or faucet #3) and follow the steps to receive some Testnet ETH. Within a few seconds, you should receive your first kETH on Kovan!

MetaMask Kovan ETH

How to transfer Kovan Testnet ETH to Optimism Kovan

Head over to the Optimism Gateway and follow the steps on the page to connect your wallet. Make sure you are connected to Kovan Testnet and have sufficent kETH to cover the gas costs. The screen should look like this:

Optimism Gateway Kovan

Once the deposit is done, head over to MetaMask and switch the network to the Optimism Ethereum (Kovan) network. Voila, your kETH should show up in your wallet now!

How to swap your kETH on Uniswap for sUSD

Head over to Uniswap and connect your wallet. Make sure you are on Optimistic Ethereum (Kovan), and swap your kETH to sUSD. Heads up, liquidity might be a mess, so for the purpose of testing, we're swapping only a tiny amount. Confirm the transaction and be blown away by the transaction speed.

Uniswap Kovan

How to access Kwenta L2 and trade risk-free on Kovan Optimism

We're almost there! Now head over to Kwenta, hit the Switch to L2 button in the top right corner and connect your MetaMask wallet. Y voila, Kwenta should now provide you with your extraordinary test synth balance. Now head over to Exchange and have fun exchanging your testnet sUSD into any other synth available. Enjoy the transaction speed!

Kwenta Synth

After following this tutorial, you have now successfully bridged your ETH from a L1 Testnet (Kovan) onto a L2 testnet (Optimism Kovan), swapped your ETH into sUSD and managed to execute your first trade on Kwenta L2. Congratulations!

Tags: english, ethereum, optimism, kwenta