Launching Swivel v4 and SWIV Staking with the Swivel Safety Module
Announcing the upcoming launch of Swivel v4 alongside SWIV staking and the Swivel Safety Module
As initially introduced with the Swivel DAO in early 2022, we are continuing toward greater decentralization and stakeholder empowerment by launching the Swivel Safety Module (SSM) and alongside it Swivel v4.
The launch of Swivel v4 will ensure the modularity required to extend protocol development beyond the core Swivel team – while also providing our lenders the highest fixed APYs.
The launch of the SSM allows our stakeholders to earn fees and put their SWIV to work in the most beneficial way possible — by insuring the Swivel protocol itself and protecting our users.
Live NOW at: https://v4.swivel.exchange
The Swivel Safety Module
While our team at Swivel consistently has demonstrated our care for safety and proper security procedures (e.g. best practices, Euler post-mortem), no protocol can ever guarantee the complete security of user funds.
No matter the number of audits or security reviews, there remains at least a very small risk of a “shortfall” event (e.g. hack/bug, parameter errors). Given this unavoidable risk, insurance is necessary to fully elevate the ultimate security of user deposits.
Enter the Swivel Safety Module (SSM).
The SSM serves three primary goals:
Advancing the security of the Swivel protocol
Empowering SWIV stakeholders through their ability to stake their tokens and earn yield for insuring the Swivel protocol
Decentralizing SWIV stakeholdership by rewarding those backing the protocol the most
Shown above, funds in the SSM are allocated to a 80/20 SWIV/ETH Balancer pool — ensuring a relatively healthy balance of assets within the insurance pool.
The yields of depositors are then derived from a number of sources:
Swivel Protocol Fees
50% of the fees accrued by the Swivel protocol are utilized to purchase Balancer liquidity tokens (BPTs) and then distributed to the SSM
Pool Fees
Any fees generated from trading activity
SSM Incentives
Every 24 hours SSM liquidity is benchmarked and rewards are recorded for subsequent distribution monthly.
BAL Gauge Incentives
Excess protocol revenue may be spent to acquire BAL tokens and promote BAL incentives for the SWIV/ETH pool
These BAL incentives are utilized to purchase BPTs and are distributed to the SSM
For more information about the SSM, its benefits and risks associated, check out our docs — Link
Swivel v4
The launch of Swivel v4 brings key integrations and modularity capabilities that elevate Swivel as a platform (and our yields) beyond our contemporaries.
Modularity
Swivel v4 ensures the modularity required to decentralize protocol development beyond the core Swivel team.
At its core, v4 represents a shift from an ossified and siloed protocol with bespoke integrations to an open and modular architecture. This means the end of new stack deployment each time we launch a new market or integrate a new partner.
As shown above, in previous Swivel iterations, each new integration required a massive overhaul of all of our technical stack. Significant efforts across our frontend, backend, and smart contracts were needed for even the smallest of new integrations and launches.
With Swivel v4, we move past this era of centralized and siloed development.
Each individual integration now sits outside of Swivel. Anyone can now propose a new integration with the development of an adapter (a modular partner integration contract) making further development seamless.
New Partner Integrations
Along with our transition to modular and open architecture, the primary goal of v4’s launch is to boost the yield of Swivel’s lenders beyond that of all contemporaries.
This comes through the integration of new partners, as well as the launch of the first ever multi-layered yield tokenization solutions.
Silo Finance
For those unfamiliar, Silo Finance is an isolated lending market that utilizes isolated pairs with common crosses.
This enables Silo to offer lending markets on more obscure assets without exposing their primary markets to the same risks. In other words, this isolated model generally enables more interesting integrations, and higher APYs.
EigenLayer
As a restaking protocol that has scaled to ~$225m in deposits within recent months, Eigenlayer offers a unique opportunity to boost the yields of our fixed-yield stakers.
While demand for restaking is still in its infancy, with the implementation of our first multi-layered staking solution, our stakers will be able to get not only a fixed yield from a protocol like Lido or Frax, but also the additional yield through Eigenlayer at the same time.
EigenLayer x Aave x Lido
The extra yield does not stop there!
With the ability to combine different yield sources into one tokenization, we can extend the Eigenlayer stack to include additional fixed-yields from lending your Eigenlayer deposit.
This ensures that all our lenders benefit from the combination of all potential staking, restaking and lending yields, thus elevating their yields beyond all other fixed-yield opportunities.
What’s Next
We soon will release a blog on “everything” SWIV staking — from the basics of how to stake, to in depth yield analysis!
Also keep an eye out for announcements regarding the upcoming Arbitrum deployment as well as upcoming launches with our sister protocol Illuminate!
And, of course, stop on by our discord to join our community and keep up to date with everything Swivel!
About Swivel Finance
Swivel is the protocol for fixed-rate lending and tokenized cash-flows.
Currently live on Ethereum, Swivel provides lenders the most efficient way to lock in a fixed rate as well as trade rates, and liquidity providers the most familiar and effective way to manage their inventory.
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