Pantera Partner: Swerve's issuance method is one of the best fair issuances I have ever seen

Original title: "US$ 380 million locked in 12 hours? Pantera partner interprets "Community Version of Curve" Swerve "

Original author: Paul Veradittakit, Pantera Capital venture capital partner

Translation: Zhan Juan, Chain News

US$ 380 million, this is the money a new project called Swerve obtained in less than 12 hours! Swerve Finance is a fork of Curve Finance, a decentralized exchange that has locked over $1 billion in value and is known for its low slippage on stablecoin swaps.

Curve’s token, CRV, is relatively new, but people are wary of it because:

1. Shareholders of the company will receive 30% of the token supply
2. An anonymous farmer launched the token without warning

3. The team has over 70% of the voting power

The anonymous developer behind Swerve is named John Deere, and he said he wanted to improve on all of Curve’s problems by creating a product that has a similar use case to Curve but is 100% owned by the community.
The way the Swerve product was created is unique, one of the things is that it can legally implement Curve’s copyright contract, and Andre Cronje, the YFI creator who has a legal background, explained it this way:
What Swerve did was add a proxy model, so it implements Curve’s copyright contract. But the storage is on Swerve. This complies with copyright while achieving a full functional fork. This is very smart from a legal and technical perspective.
——Andre Cronje, founder of YFI

The only way to get tokens is to provide liquidity

Besides a minor UI issue on the homepage, no one knows when the project will start liquidity mining and everyone has a fair chance to start providing liquidity at the same time

Tokens are distributed in sequence as follows:



Within 12 hours of the product going live, we saw 970 addresses deposit over $377 million in the protocol’s stablecoin pool, with a total locked value of $450 million now.

How to participate?

1. Launch or click on the Swerve Finance app on their website

2. Click on SWUSD, then click on Deposit

3. Deposit one or a combination of stablecoins from DAI, USDC, USDT, and TUSD

4. Once deposited, you can click on DAO

5. In the DAO menu, you can choose to lock up some of your tokens to gain voting power and increase boost rewards, up to 2.5x (to calculate how many tokens are equivalent to a certain reward multiplier, click on CALC)

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6. Finally in the DAO menu you will be able to check the current APY (which is ~186%) and claim rewards

How to govern?

The amount of tokens a user holds is important because this amount equates to the ability to create proposals (requiring 2500 veSWRV) for voting and approval. There are currently 5 proposals under discussion:

I think these proposals all make sense in the early stages of a project because the code being released has not been audited (so be aware of the risks!), rewards/fees have not been finalized, and there is no clear rule on how developers will be funded.

Another strategy to prevent these smart contract projects from failing is to have multiple signatories, and Swerve is looking for 4 influential people to take on this role.

What does all this mean?

The beauty of blockchain is that it enables transparency and automation. It follows that the code is open source and people can fork (take the code) and use it to create new use cases and economic models. We have seen projects like Sushi and Swerve that have both access to liquidity from traditional players Uniswap and Curve, and have token models that give the community more distribution and control.

It is still up for debate whether founders/developers should be anonymous or public. Sushi and Swerve both chose to remain anonymous and build trust through influencers, while Yam has some well-known names from the investor/entrepreneur side.

It is also unknown how much governance should be given to the community in the early stages of a project? Projects succeed because they have a holistic, but sometimes quite flexible, vision for how the product will evolve. Will too much governance slow down innovation? What kind of things should be left to community governance?

What I do know is that if these new forks are launching unaudited contracts, participants need to carefully assess their risk tolerance and follow the technical people who are working on the contracts, and need to vote for audited contracts shortly after release. I also know that in the near future, we will see more decentralized exchanges, decentralized stablecoins, and decentralized lending protocols forked.

Who is next?

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