New DeFi Token SWRV Jumps 33% in a Day; Dump Incoming?

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.

swrv, cryptocurrency, Defi, bitcoin

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.

Other than that, nothing else would explain the incredible price rise of the Swerve Finance token.

The Project

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…

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