SWRV, the native token of the newly-launched decentralized finance platform, Swerve Finance, surged 33 percent in the last 24 hours.
The SWRV/USD exchange rate changed hands for $7.53 per token as of 1100 GMT Thursday. It was now trading above $6.026, its previous record high established on its first day of trading on September 5. As of this Monday, SWRV had even fallen to as low as $3.221, according to data fetched by Messari.
New DeFi token SWRV in a pumping phase. Source: Messari
The enormously volatile price moves illustrated a higher-risk-higher-reward sentiment in the SWRV market. Traders, who have earlier missed/experienced similar explosive price moves in the tokens of newly-launched DeFi projects, jumped into SWRV to earn volcanic profits.
Meanwhile, the jumps today also came as Huobi Global added an SWRV deposit option to its trading platform.
Deposit open -Trading starts soon!
Details 👇 #InnoHub
— Huobi (@HuobiGlobal) September 10, 2020
Other than that, nothing else would explain the incredible price rise of the Swerve Finance token.
Swerve Finance is a clone project, a liquidity pool on Ethereum for efficient stablecoin trading with full token distribution among liquidity providers. That is the exact thing Curve Finance–another DeFi project–does.
The twinning continues with ySWRV, a token the Swerve Finance awards its liquidity providers, further stake-able in its homegrown DAO to earn SWRV. In the first two weeks, Swerve will distribute a total of 9 million SWRV tokens out of its 33 million total supply.
This whole economics is similar to that offered by Curve. But the Swerve Finance backers argue:
“We have written an independent Solidity code that interacts with Curve’s contracts essentially as an on-chain API via delegation. Any reused software in Swerve is MIT licensed.”
The Swerve Finance has already attracted about $35 million…