What Is swerve solana (SWERVE)?
The swerve solana 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.
swerve solana 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.
swerve solana Storage Key Points
|Coin Name||swerve solana|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
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 solana provides an alternative to USD denominated stable coins. It allows liquidity providers exposure to currencies such as EUR, KRW, GBP, CHF, AUD, and JPY.
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.
Liquidity emissions will be reserved for liquidity mining. swerve solana tokens are bought off the open market. All partnerships tokens are vested on-chain (6 month cliff, 3 year linear vesting)Future emissions schedules will be announced at the time of the farm release.
The fees accrued from minting and burning of stable coins, in addition to the profits accrued from liquidations, market making, and arbitrage will be used to:
1) buyback SWERVE tokens off the open market and burn them, reducing the circulating supply.
2) redistributed to liquidity providers through SWERVE liquidity pools.
Why is the market price of ICE so volatile?
It is extremely important to understand how early in development the ICE DAO protocol is. A large amount of discussion has centered around the current price and the expected stable value moving forward. The reality is that these characteristics are not yet determined. The network is currently tuned for expansion of ICE supply, which when paired with the staking, bonding, and yield mechanics of ICE DAO, result in a fair amount of volatility.
ICE could trade at a very high price because the market is ready to pay a hefty premium to capture a percentage of the current market capitalization. However, the price of ICE could also drop to a large degree if the market sentiment turns bearish. swerve solana would expect significant price volatility during your growth phase so please do your own research on whether this project suits your goals.
What is the point of buying it now when ICE trades at a very high premium?
When you buy and stake ICE, you capture a percentage of the supply (market cap) which will remain close to a constant. This is because your staked ICE balance also increases along with the circulating supply. The implication is that if you buy ICE when the market cap is low, you would be capturing a larger percentage of the market cap.