The decentralized finance (DeFI) market is witnessing an ongoing battle between two new decentralized exchanges namely Curve Finance (CRV), and it’s very recent fork dubbed Swerve Finance (SWRV). Curve is by-far one of the most popular DeFi protocols with more than $1 billion in total value locked (TVL), but it looks its fork is catching up really quickly.
Launched just days ago, Swerve finance is attracting a lot of investors and has quickly managed to garner more than 40% of Curve’s total value locked in just four days from launch.
The battle of TVL between Curve and Swerve is getting exciting as DeFi enthusiasts seem to be betting big on the unaudited protocol as the amount of Swerve deposits have hit $415 million. However, in terms of volume the competition isn’t too tough.
As of now, Swerve’s daily trading volumes are just about 9% of Curve’s, standing at around $13 million, while Curve boasts a daily trading volume of nearly $160 million.
The competition is going to be quite interesting to watch considering the fact that both of these protocols are quite similar to each with the only difference being that Serve finance is “100% community-owned and governed.”
This means that investors started earning SWRV tokens from the moment they made their deposit.
Meanwhile, Curve did not deploy its CRV tokens on day one and was rather forced to launch CRV ahead of its planned launch after an anonymous user deployed the open-source CRV token and CurveDAO contracts on the Ethereum mainnet before the official launch.
It was also discovered that wallets had been staking Curve assets and earning CRV tokens ahead of the launch event and this resulted in several allegations of unfair pre-mining coming from the Curve community.
Despite all this, one thing to be noted is the fact the Swerve still remains an unaudited protocol, making it quite a risky investment. The DeFi market has previously witnessed how one bug can bring an entire project down.
On the other hand, Curve has been audited by smart contracts audit firm Trail of Bits.
But this could all change in the future if Swerve manages to provide better liquidity with minimum slippage or the difference between the expected price and the execution price of a trade.