What is Swerve

Article Summary, Automatically Generated By AI

About Swerve

Key Points:

  • Swerve is a decentralized liquidity exchange pool focused on stablecoin pools.
  • Launched on Sept. 4, 2020, with a combined pool of DAI, USDC, USDT, and TUSD.
  • Total value locked reached nearly $1 billion in December 2020.
  • Uses ERC-20 token SWRV for governance and rewarding liquidity providers.

Founders:

  • Founded by pseudonymous developer “John Deere” as a passion project.
  • John Deere has experience in software development and crypto.
  • Community member “FairlyRarePepe”

About Swerve Finance

Introducing Swerve (SWRV): A Revolutionary DeFi Protocol

Swerve is a decentralized liquidity exchange pool, born from a fork of Curve, with a primary emphasis on stablecoin pools. Initially, it debuted with a singular, aggregated pool comprising Dai (DAI), USD Coin (USDC), Tether (USDT), and TrueUSD (TUSD). By December, the project proudly announced that the pool had surpassed a remarkable milestone, boasting a total value locked of nearly $1 billion.

As a decentralized autonomous organization, Swerve leverages an Ethereum-issued ERC-20 token, SWRV, to facilitate governance and incentivize liquidity providers.

The project was formally unveiled on September 3, 2020, and officially launched on the following day.

The Visionaries Behind Swerve: Meet the Founders

Swerve was conceived by a pseudonymous developer, known only by the moniker “John Deere”, who nurtured it as a passion project in his spare time, outside the realm of his full-time occupation. During an “ask me anything” session, when queried about his personal background, he humbly described himself as “just a lowly farmer” with a penchant for “sane token distributions.” Additionally, he revealed that he possesses experience in software development and cryptocurrency.

Although he single-handedly initiated the project, John Deere has graciously acknowledged the community’s invaluable contributions to its design and implementation. He has expressed his desire to gradually relinquish control, allowing the community to assume a more prominent role in guiding the project’s development as it continues to evolve.

In October 2020, the Swerve governance community convened to cast their votes, ultimately deciding to appoint “FairlyRarePepe”, a esteemed community member, as an additional developer to bolster the team.

Unveiling the Unparalleled Swerve: A Revolutionary Force in DeFi

Swerve emerged as a community-driven alternative to Curve, founded on the principles of fair governance and decentralized power structures. The founder of Swerve has been vocal in their criticism of Curve, citing concerns over the concentration of power in the hands of a single individual. In contrast, Swerve boasts superior swap pricing and more attractive annual percentage yields on stablecoins, setting it apart from its competitors.

Swerve also employs a reward gaming mechanism dubbed “Boost,” which incentivizes liquidity providers to lock up SWRV tokens in exchange for a higher Annual Percentage Yield (APY) compared to those who opt out of this feature. The magnitude of the APY boost is determined by a sophisticated calculation that takes into account the number of tokens locked by the user, the total amount locked, and other pertinent factors.

Trading on the platform is subject to a nominal fee of 0.03%, which is subsequently allocated in a 50/50 split. Half of the fee is awarded to liquidity providers, while the remaining half is retained as an administrative fee, with proceeds directed to the Swerve treasury, capped at $200,000. Notably, in October 2020, the governance voted to accept a grant, paving the way for further development on the decentralized finance platform, Serum (SRM).

In October 2020, founder John Deer articulated his vision for the project, emphasizing the imperative to bolster the platform’s trading volume and devise more compelling incentives for holding SWRV.

What Is the Circulating Supply of Swerve (SWRV) Coins?

Swerve boasts a total token supply of 33 million, with every minted SWRV token being allocated to liquidity providers. Notably, the development team has emphasized that there was no premine, and no tokens were reserved for the developers themselves.

A total of nine million SWRV tokens were allocated during the initial two-week period, followed by an additional nine million tokens to be distributed over the course of the first year. Commencing from the second year, a yearly allocation of three million SWRV tokens will be maintained until the entire supply of 33 million tokens is fully minted by the end of the sixth year.

The Swerve Network’s Robust Security Mechanisms

SWRV is an ERC-20 token issued on the Ethereum blockchain, which implies that SWRV transactions are authenticated by the Ethereum network. Notably, Ethereum employs a proof-of-work consensus algorithm, wherein miners engage in a competitive process to append new blocks to the blockchain, and a majority consensus among all nodes in the network is required to validate and post a record.

Swerve’s treasury is governed by a select group of multisignature key holders, carefully chosen through a democratic governance vote. This esteemed group comprises three community members and four external representatives, collectively entrusted with the responsibility of safeguarding the treasury keys.

The Swerve protocol’s smart contracts underwent rigorous audits by esteemed firms Cryptic Labs and Peckshield, yielding no critical security vulnerabilities. However, in October 2020, Swerve disclosed that it had been alerted to a potential security weakness in the smart contracts governing the platform, and subsequently announced that it was diligently working on a remedial solution.

Acquiring Swerve (SWRV): A Comprehensive Guide to Exchanges and Marketplaces

SWRV is listed on prominent cryptocurrency exchanges, including OKEx, Huobi Global, Binance, and MXC.COM, among others, where it can be traded against a diverse range of assets, including the U.S. dollar, leading cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), as well as popular stablecoins like Tether (USDT) and Binance USD (BUSD).

Are you considering investing in SWRV or exploring other prominent cryptocurrencies like Bitcoin? CoinMarketCap offers a straightforward, step-by-step guide to educate you on the world of crypto and facilitate your inaugural coin purchase.

Associated Resources:

Delve into the world of Curve, the pioneering project that inspired the creation of Swerve through a fork.

Delve into the world of Uniswap, the premier decentralized trading protocol, revolutionizing the landscape of digital asset exchange.

Delve into the intricacies of DAOs? Explore an exhaustive analysis on Alexandria, CoinMarketCap’s premier online educational platform.

Remain abreast of the latest advancements in decentralized finance and trading with insightful updates from the CoinMarketCap blog.

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