Swerve (SWRV)

Swerve

Type	Stablecoin Yield Farming
Total supply	33.000.000
Website	https://swerve.fi/

 Basics

• Founded in: 3-9-2020
• Mainnet release: says its live (7-9-2020)
• Based in:
• From the announcement (3-9-2020):

"A fork of $CRV with 100% of the token distribution allocated to liquidity providers"

History

• From The Defiant (5-9-2020):

"We essentially use their own contracts on chain as an API via DELEGATECALLS, one could argue it was more of we built a Curve on top of Curve vs. a fork of Curve, hah"

Audits & Exploits

• Bug bounty program can be found [insert here].
• Unaudited (7-9-2020).
• From The Defiant (5-9-2020):

"There is very minimal new code introduced (and is quite simple), I have had some fellow farmers take a look and have been reviewing for some time but ultimately will recommend participants to proceed with caution (as they always should) until it is more publicly vetted."

• Scored a 27% on DeFi Safety (12-2020); "​

"Since Swerve is not taking credit for the audit below as an audit on their website or GitHub, we cannot say that they have an audit. Score 20%.

Cryptic Labs did an audit on September 14th, but the ":audit" once read is not actually an audit. It does give a good description of the differences between curve and swerve from a software diff perspective. There is no evidence of actual audit processes on the new code. Section 1.5 is for Defect Checklist. It just says "No Defect was found". No indication of the types of tests or tools.

Swerve finance was released on September 4th."

With the comment: "a dismal 27%.  Low docs, no audit and no tests. Private repo? Can't tell the devs won't respond."

Bugs/Exploits

• From Peter Zeitz an economics researcher at 0x. "This is a report (8-10-2020) on a smart contract vulnerability I discovered in the Curve protocol. The vulnerability is interesting because it exposed Curve and Swerve users to risk of massive financial loss, but went undiscovered despite multiple contract audits." He got paid a 'very generous bug bounty' by Curve.

Governance

DAO

Has a Swerve DAO. The DAO will be the owner of all the protocol contracts, and all changes to the protocol or DAO must be voted on and approved by SWRV holders.

Notable Governance Votes

• Starting on March 16, 2023 there were multiple attempts to empty $1.3M from a defunct Swerve Finance pool using a governance attack. Following a doxing and subsequent contact with the attacker, things were quickly resolved with the attacker encouraged to take the whitehat route.

Token

Launch

• From The Defiant (5-9-2020):

"The protocol unveiled last night — not without a few hiccups with the UI, which had some calling “pre-mine,” while others attributed to an honest mistake. The issue was fixed and in the few hours since launch, 970 addresses have deposited more than $377M in the protocol’s pool of stablecoins."

Token allocation

• From their website (7-9-2020):

"There's no fake-out deployment, no questionable pre-mining, no founder controlling majority of the governance vote, no suspect team proposals, no 30% allocation to 'shareholders', no team allocation, no decades long distribution, none of it.

It's a simple 33,000,000 supply owned entirely by you, the community of liquidity providers and users."

Utility

• From Yield Farmer (7-9-2020):

"The native governance token - SWRV - is used for adding new pools alongside extra LP rewards."

Tech

• Whitepaper can be found [insert here].
• Code can be viewed here (7-9-2020).
• Built on:

Upgrades

• From Decrypt (30-9-2020):

"Recently there have been proposals to add a new pool, as well as to direct admin fees to the treasure."

Liquidity Mining

• From their website (7-9-2020):

"If you provide liquidity to Swerve, you get ySWRV tokens which can be staked in the Swerve DAO to earn $SWRV. To kickstart the protocol and encourage users to try out Swerve, the first two weeks will have a larger distribution of $SWRV awarded."

Other Details

• Hosted on IPFS.

Roadmap

• Can be found [Insert link here].

Usage

• Reached (7-9-2020) almost $500m in total value locked in under a week.
• From Decrypt (30-9-2020):

"With liquidity mining rewards as high as 250%, Swerve quickly grew and sucked in hundreds of millions of dollars with TVL over $800M at one point. However, when the rewards were massively decreased on September 19th, Swerve’s TVL dropped massively as well and sits around $44M at the time of writing. Without strong differentiation from its parent, it seems Swerve’s LPs weren’t as interested in sticking around as Sushi’s."

Competition

• Curve
• From their website (7-9-2020):

"We’ve also removed some bullshit.

On top of a fair and 100% token distribution and no pre-vesting or allocations, Swerve is launching with just one pool to start, using DAI, USDC, USDT and TUSD. This cuts gas costs down dramatically for interactions vs using Y tokens. The DAO can decide to vote in additional pools they want. We don't want LPs initially forced to provide liquidity for additional pools they may not want to actually participate in just to chase rewards. Voting will be enabled within the DAO in about 24 hours.

The whitelist for smart wallets on the voting contract is removed, smart contracts like the YFI ecosystem should be able to participate. Lastly, the voting boost for $SWRV takes effect after one hour instead of 2 weeks, so you can start right out of the gate."

• From The Defiant (5-9-2020):

"The Swerve protocol is governed by a Swerve DAO and will issue 100% of its governance tokens to liquidity providers as reward incentives, instead of the 62% allocated in Curve."

Team, Funding, Partners

Team

• Full team can be found [here].
• John Deere; lead (and only as of 7-9-2020) dev. "It is just myself, but I say we as I hope to represent all fair and honest farmers 😊. I am just a simple farmer and developer, I have not thought much about if I will participate but my funds are nothing larger than the average user, it would not be a significant or large amount of capital by any definition."