An overview of the SWERVE ecosystem

What is SWERVE and the SWERVE ecosystem?

The SWERVE protocol is a decentralised asset provider enabling users to access alternative non-USD stable coins through staking of collateral. The SWERVE protocol also is a decentralized on-chain liquidation engine system powering derivatives markets on trading and lending platforms on Solana.
Right now, there are no major non-USD stable coins leading to a dependency on the dollar. We are enabling users to gain onchain exposure to other currencies like KRW, JPY, etc. This enables additional market pairs to enter the Serum ecosystem as a new base is introduced.
The liquidation engine aspect of the protocol plays a key role in keeping a healthy Solana ecosystem. By managing liquidations and providing capital across several different derivatives and lending platforms, the overall usability and health of the platforms are substantially increased, which helps further advance the ecosystem.

Solana's First Alternative to USD Stable Coins

Swerve is bringing Solana's first Forex-focused synthetic assets where you can supply collateral to borrow Forex assets. Swerve provides an alternative to USD denominated stable coins. It allows liquidity providers exposure to currencies such as EUR, KRW, GBP, CHF, AUD, and JPY.

Liquidation Engine

Swerve will also serve as a backbone to the Solana ecosystem running a number of supporting liquidators for protocols and using any profit to buy back SWERVE and either 1) burn or 2) distribute to LPs.

Powered by Solana

Solana works via Proof of History (PoH), which is a concept that allows for validators and individuals alike to prove that a message has occurred before or after a specific event. Proof of History operates through sequential functions; these sequential steps coincide with a concept known as a “Verifiable Delay Function.” These sequential steps are a vital component of the Verifiable Delay Function and produces timestamps and transactions that can be easily verified.
Solana is able to currently handle over 50,000 transactions per second with near-zero latency, and has a theoretical maximum of over 700,000 transactions per second.

Summary of Utility

The SWERVE protocol holds the following utility:
  • Enables alternatives to USD stable coins
  • Rewards from the SWERVE protocol and liquidating engine distributed to liquidity providers
  • Contributing to the backbone of the Solana ecosystem supporting protocol liquidations, advancing the ecosystem health and accruing liquidation fees
  • Governanace model (DAO) where token holders can vote on protocol direction, integrations and supported protocols
Last modified 5mo ago