Swerve Newsletter #5

By Swerve Finance | Swerve.fi Blog | 7 Nov 2020

Welcome to Swerve Newsletter #5. This one’s coming penned to you by John Deere. I wanted to give you guys a high level update and near-term roadmap for Swerve.

Governance

Swerve has been developing some momentum in overcoming fundamental operational challenges presented by our governance structure. The governance heavy lifting has occurred—courtesy of a phenomenal governance turnout last week—and we’ve been able to make progress on a number of items, including: organizing and enacting treasury, hiring contributors, voting in and developing new pools that drive toward a cohesive strategy, and exploring strategic partnerships.

SIP-15 Reduce Quorum Passes On-Chain

This past week, the 30% ownership vote to reduce quorum to 9% passed! This is an amazing achievement by the Swerve community! A few figures to share:

93 Votes
Largest voter: ~2.5% of voting total (!!!)
27% of all SWRV tokens vote locked
Reached in under 3 days!

We will execute via contract once deadline passes.

SIP-17 50% Admin Fee

We have executed SIP-17 within contract, however it is applying the original 33% admin fee that we had first voted on and never turned on. If we want to increase to 50%, we’ll have to make another on-chain vote, but the treasury is accruing swUSD.

SIP-19 Newest Engineering Hire - Fairly Rare Pepe

A huge congratulations to Fairly Rare Pepe for his nearly-unanimous hire vote. FRP will join Swerve as its newest engineer hire.

If you are interested in contributing to Swerve or joining the team, drop us a line in Discord!

SIP-21 Treasury Cap

A treasury cap of $200k passed signal vote this week. There has been ample discussion of how to return value to SWRV/veSWRV holders once the treasury cap is reached. Join our #governance chat on Discord to chime in.

Swerve will need several more ownership votes in order to fully implement treasury multisig and tSWRV. Once this is done, the treasury will be fully operational and able to deliver tSWRV promissory notes to contributors who will be able to draw from the treasury.

Development

Development is underway on many fronts, including a new front-end, new pools, new integrations and a full implementation on both Ethereum and Serum.

UI/UX Update

Pools

Our near-to-medium term strategy for pools is to connect the “golden triangle” so that Swerve can properly leverage Synths. In order to do so, pool priorities are such:

sBTC-wBTC-renBTC: Passed SIP-20. Under Development (Deere)

sETH-ETH: Prepped for development/deployment (Deere)

And several items that remain to be voted on:

sUSD Metapool: Exploring Possibility w/ Implementation (Deere). If not possible, will look to add an sUSD pool.

DFI.Money: Passed signal vote but this pool would dilute and would not add the most important factor of a theoretical new stable pool, sUSD (Will signal vote an attempt to overturn, if community deems necessary). This pool has been deprioritized.

Governance Infrastructure

Pepe has been writing and testing the code for tSWRV promissory tokens and it will be deployed shortly.

Integrations

In the past few weeks, Swerve’s stable pool has been added to aggregators such as Totle, Paraswap, and 0x’s Matcha. These integrations each bring incremental volume to Swerve.

We are also exploring integrations with some high-profile Defi projects. Stay tuned!

Full Implementation

Given the passing of SIP-18: Build Swerve on Serum, and recent discussions around the constraints of our implementation, a natural segue to the development of a full implementation of Swerve emerges.

We are looking to build our own ground-up implementation of an AMM which competes and wins on stable-swap efficiency.

This is a call for any contributors within or from outside the Swerve community who are interested in helping to design and build a full implementation from the ground up on both Ethereum and Serum!

We have been approved for a grant of 220k SRM from Serum’s ecosystem fund, EcoSerum, in order to build this out.

Please drop a line in the Swerve Discord if you’re interested in contributing!

Tweet of the Week

FAQ

How does the Boost work?

Boost is a reward gaming mechanism where LPs can increase their rewards in proportion to other LPs who have not Boosted. It is more of a protection against dilution of rewards. If nobody boosts, everyone gets the base rate APY. If most users don't boost and some do, the boosters would get more rewards and the rewards for non-boosters would be reduced in proportion. If everyone boosts to max levels, everyone would get the base rate APY.

How does governance work?

Currently all the governance-related discussions take place in Discord. The proposals suggested by the community are put up for an off-chain voting solution here.

Off-chain voting does not cost anything, and anyone is free to create proposals, although it is recommended to discuss it with the community first. Off-chain votes are used to gauge the readiness and acceptance of the community towards proposals, and the votes are made by using SWRV held in wallets. Off-chain proposals can be discussed in the numbered discussion channel in SIPS where the SIP number corresponds to the proposal.

Proposals that pass in the off-chain votes would be formalised on the official on-chain DAO which actually costs gas fees to vote and relies on Voting Power (veSWRV) instead of SWRV. Voting Power is attained by locking SWRV tokens in the DAO. The DAO proposals can be accessed here.

All off-chain voting proposals that pass would eventually be put up for vote on DAO for finality and implementation.