Swerve.Finance Newsletter #1

Swerve.Finance Newsletter #1

By Swerve Finance | Swerve.fi Blog | 16 Oct 2020

Welcome to the first Swerve.fi Newsletter discussing all things related to the Swerve ecosystem. Our aim with this newsletter is to keep the Swerve and crypto community informed of the latest news, including product launches, governance changes, and ecosystem updates.



-        Emission Reduction

-        SIP-1 Audit

-        SIP-2 & SIP 9 Treasury & Multisig

-        SIP-3 & SIP-5 Fee reduction & A-factor

-        SIP-6 & SIP-10 Additional Pools

-        SIP-11 Reduce Governance Quorum


Emission Reduction

As most are aware, Swerve issuance rate was set to decrease once the first 9 million coins have been minted. This has already happened on Friday, September 18, 2020 at 11:54:43 PM GMT.

Afterward, the issuance rate is set as followed:

Year 1 (after the 2 weeks): 9,000,000 SWRV

Year 2: 3,000,000 SWRV

Year 3: 3,000,000 SWRV

Year 4: 3,000,000 SWRV

Year 5: 3,000,000 SWRV

Year 6: 3,000,000 SWRV

Total: 33,000,000 SWRV


SIP-1 Audit

SIP-1 was passed and PeckShield has been voted by members to perform the audit for Swerve’s protocol. The community successfully raised 35,000 USDT under 24h to pay for the auditing fees. The audit is currently in progress and we will send out an update as soon as we receive the documents, PeckShield has communicated with us that it is their goal to complete the audit by the end of the week.

In the meantime, a voluntary audit by crypticlabs.org was done and the report can be found at the following address: https://github.com/crypticlabs/swerve-audit-report/blob/master/Swerve%20Finance%20Audit%20-%20by%20Cryptic%20Labs%20v3.pdf


SIP-2 & SIP-9 Treasury & Multisig

SIP-2 is currently in the voting process. We invite all current veSWRV to cast their vote and fulfill your swivic duty. The treasury would help us to cover all future development and r&d, pay back the community contributors, pay back developers for their initial expenses, and as the community mentioned, would also help us have a war chest for any other requirement. This is a move towards making swerve finance have a more solid foundation, and future-proof stability and development.

This proposal seeks to enable an admin fee (currently set to 0) to be redirected to the treasury as a fraction of the current trading fee (0.03%), the community voted that 35% admin fee would go towards the treasury. This mean 0.01% from the collected 0.03% trading fee. For the sake of brevity and better reporting it has been decided by the community to round it off to 0.01% instead of 0.0105%.

It has been established that the treasury would be controlled by multisig holders (SIP-9 T1). The format established has been 4 approval required out of the 7 holders (SIP-9 T2) and it has been voted that the Swerve community shall elect 3 out of the 7 holders (SIP-9 T3).

SIP-2 http://ipfs2.swerve.fi/dao/#/dao/vote/parameter/2

SIP-9 T1 https://snapshot.page/#/swerve/proposal/Qmd7XFsZM2ZaLo1PyfbZCFU6Dw1SQtRZgukrf9obwWjZiF

SIP-9 T2 https://snapshot.page/#/swerve/proposal/QmXHGmvSzDMYd4TNpp5djHLDb4bXC59zF2KU556FgWnZJQ

SIP-9 T3 https://snapshot.page/#/swerve/proposal/QmSWtyggaXauBL1WcuUUXmZS4f67kwSDFY2nX9rrt3CA6i


SIP-3 & SIP-5 Fee reduction & A-factor

Swerve community has voted to reduce the trading fee down to 0.03% from 0.04% to offer a competitive rate to traders. Lower fees should offer a minute competitive advantage to Swerve's SWUSD pool.

Alongside SIP-3, SIP-5 was voted to reduce the a-factor from 1000 to 100. This has for advantage to bring the pool closer to the peg, more evenly distribute the stable assets within the pool and encourage depositing more DAI into the pool.

Concerning the a-factor change users might have experienced UI discrepancy across different platforms. To clear things up on the subject, there was about a ~0.085% IL (less than one tenth of one percent) with the A factor change in Swerve today with a pool size of $200M. This is pretty average and marginal arbitrage. This is a one-time thing. DAI moves more than 0.085% on a daily basis itself. DAI has also repegged down to about $1.00 vs. $1.04, which may affect users who had deposited DAI at > $1.00. It has nothing to do with the A parameter change.

SIP-3 & SIP-5 http://ipfs2.swerve.fi/dao/#/dao/vote/parameter/1


SIP-6 & SIP-10 Additional Pools

SIP-6 was proposed to add sUSD pools while issuance of SWRV were still high. It was voted against and established that an sUSD pool should be established once the emission go down.

As for SIP-10, Dfi.money/YFII has approached the Swerve community about the formation of a new iPool containing USDT, USDC and Dai. These are the most used 3 stablecoins in Defi and make up the majority of demand for stablecoins. The reason they have requested this is that YFII do not currently accept TUSD as a deposit currency therefore cannot currently use the default swerve pool since it would expose them to TUSD risk.

Those familiar with the ypool on curve by Yearn finance will have a good understanding of how this would be structured.

This would be a good way to bring more AUM under swerve, currently YFII has 50m AUM that can be brought under swerve with this integration.

SIP-6  https://snapshot.page/#/swerve/proposal/QmdCEtyrxWMePNqgxwM1RdApt87XaS1cRJQM5mRSjcAdFD

SIP-10  https://snapshot.page/#/swerve/proposal/QmYXRhKhU456qbuLu2AkezYzAE1vKn2C58AL8tku4ixaFn


SIP-11 Reduce Governance Quorum

Over the past week, developers alongside the community raised the question concerning the high participation rate needed to pass proposal in the DAO. The current participation rate of 15% to reach governance quorum is too high and needs to be reduced to pass decision smoothly.

The vote to establish the participation rate for the upcoming governance decisions is currently underway and will end on September 23rd. You can vote on the Snapshot page of Swerve.fi

Current total veSWRV: 4,10,110 veSWRV prior to 15th: 353,330 veSWRV prior to 15th that voted: 43,137 veSWRV deadweight: 3,10,193 New veSWRV (since 15th): 56,780 Helpful veSWRV: 99,917 Now to get 15% quorum, we need 15% of total veSWRV to approve = 61,516.5 Since we currently have ~100k veSWRV, it would be enough to pass a future 15% quorum vote if roughly 62% helpful veSWRV holders participate.

We can confidently say we are in a much better standing than when previous vote went live, and should be able to attain quorum in the oncoming vote.

However, just to maximize the chances of proposal attaining quorum - like to request all of you to lock as much SWRV as you can even for a week’s duration to participate in governance and help us succeed! Please lock your SWRV in anticipation of the vote, and be ready to participate in governance! We would also like to thank all of you for sticking by through this rough patch - a lot of you have reached out and offered support through various means, and we really appreciate all the contributions and support! We will definitely come out of this stronger both as a community, and as a project.

SIP-11  https://snapshot.page/#/swerve/proposal/QmePBJC5Etxjh3vEzSuc1qrrBH65LBwbxzw96N5gd6snpB


Do not forget that this is a community-built protocol. It is not often that you have the chance to get involved in promising blockchain projects, and this is one of those opportunities. Come and get involved in the discussion. Join us on our discord and telegram!

Swerve Protocol: Swerve.fi

Swerve DAO: http://ipfs2.swerve.fi/dao/#/dao/

Snapshot Voting: https://snapshot.page/#/swerve

Discord: https://discord.com/invite/vkhw8Av

Telegram: https://t.me/swervefi

Community Forum: https://gov.swerve.community/

Created by RedArctic & Cipriani88

Swerve Finance
Swerve Finance

A swapping protocol that's 100% community owned and governed.

Swerve.fi Blog
Swerve.fi Blog

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