Another DeFi fork: Swerve Finance

  • Fair launches are all the rage now in DeFi, inspired by BTC and YFI
  • Swerve Finance forked Curve to launch with no "pre-mine"
  • Over $400 million in value was locked in the first day

DeFi Craze

Within the DeFi craze, a specific type of hype has emerged: fair launches. This refers to the creator fo the project not having token allocations before the mining begins (no pre-mine) as well as fair distribution. This has mainly been inspired by Bitcoin as even Satoshi had to mine his coins and he/she/they did not save coins for themself before the project going public. Another project that acted as inspiration for fair launched is yEarn Finance.

Curve Finance

Curve Finance is a stablecoin swapping platform. The reason for its necessity is that swapping on Uniswap is expensive as any trade between two tokens A and B is composed of two actual trades: A to ETH and then ETH to B. Liquidity providers (LPs) benefit from the fees and overall revenue that the platform earns as well as being rewarded by the CRV token. The latter posed some issues as the contract was not released by Curve’s developers but rather by a community members. This was great as it showed true decentralisation but by the time the Curve team audited the contract some users had already been staking assets and earning Curve which is where a premine-like issue emerged.

Swerve Finance

Swerve Finance is a Curve Finance fork but with no pre-mine worries, also unlike SushiSwap, the lead developer’s identity is known under the name John Deere. The platform has attracted more than usual attention and gained over $400 million in total value locked (TVL) in the first day.

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