Thread by @mrjasonchoi

Usually not a fan of lazy clones, but @SwerveFinance is an interesting experiment given the overhang that @CurveFinance has with its launch.

Its (incentivized) growth has been pretty impressive 👇

https://twitter.com/Arthur_0x/status/1306262008086446085

1/ @SwerveFinance began with ~$200M TVL a week ago and has quietly climbed to $900M today with 1 single pool.

Comparatively, @CurveFinance has 8 pools totaling ~$1B in deposits.

2/ One of my main concerns with holding is the aggressive inflation schedule.

I've warned people about this, and those who listened avoided financial seppuku: a stunning $37 -> $1 drop.

https://twitter.com/mrjasonchoi/status/1294268757381062656?s=20

3/ proposes a less aggressive inflation schedule.

In ~12 months time:

will increase supply by ~1400%+
will increase supply only by ~98%

Coupled with a much lower valuation, this could imply less sell pressure / more speculative holding to bet on upside.

4/ Borrowing from @lawmaster - if you believe Total Value Locked is a reflection of a network's value, 's current fully diluted value implies gross undervaluation.

Even with significantly lower volumes, still appears undervalued on a volume basis.

5/ The main risk with is death by irrelavance.

When rewards meaningfully reduce, will depositors flock to the next farm/ go back to Curve? Or will they value the lower inflation and community-first ethos over short term fees? The next week will be crucial to monitor.

6/ Even at current price, after adjusting fully for inflation, is still cheaper than a lot of ghost chains ever *after* today's market wide selloff 👀

Caveat: valuations are tricky in crypto and price can change at the drop of a dime.

7/ Disclaimer: have some exposure to