Julian TraversaFeiRari Vulnerability Post-Mortem
This Saturday, April 30th at ~9:30 EDT (1:30 UTC), Rari Capital suffered a re-entrancy attack which left their pools insolvent to the tune of roughly ~$80 million. This attack included the FEI market that we’ve integrated here at Swivel — FeiRari Pool 8.TL;DR:As of now, May 2nd, ~90% of our user’s funds have been recovered, and ~198,000 FEI remain. With the FeiRari community call happening tomorrow at 8:00 PM ET (0:00 UTC), the Swivel DAO is initiating recovery SIP (#006) preemptively at 12:0...
Julian TraversaAnalysis of Decentralized Interest-Rate Swap Models
At ETHDenver 2020, my partner and I started the development of DefiHedge, a protocol for fixed-rate lending and interest-rate swaps. At the time, we had the impression that we were the first and only team building interest-rate derivatives, but shortly thereafter learned that was not the case. It happened that not only had the team at CherrySwap released a pooled interest-rate swap mechanism at ETHBerlin 2019, but Paradigm’s own Dan Robinson released a primitive for decentralized zero-coupon ...
Julian TraversaFeiRari Vulnerability Post-Mortem
This Saturday, April 30th at ~9:30 EDT (1:30 UTC), Rari Capital suffered a re-entrancy attack which left their pools insolvent to the tune of roughly ~$80 million. This attack included the FEI market that we’ve integrated here at Swivel — FeiRari Pool 8.TL;DR:As of now, May 2nd, ~90% of our user’s funds have been recovered, and ~198,000 FEI remain. With the FeiRari community call happening tomorrow at 8:00 PM ET (0:00 UTC), the Swivel DAO is initiating recovery SIP (#006) preemptively at 12:0...
Julian TraversaAnalysis of Decentralized Interest-Rate Swap Models
At ETHDenver 2020, my partner and I started the development of DefiHedge, a protocol for fixed-rate lending and interest-rate swaps. At the time, we had the impression that we were the first and only team building interest-rate derivatives, but shortly thereafter learned that was not the case. It happened that not only had the team at CherrySwap released a pooled interest-rate swap mechanism at ETHBerlin 2019, but Paradigm’s own Dan Robinson released a primitive for decentralized zero-coupon ...
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Announcing The Launch Of Swivel’s FEI Market On Rari’s FeiRari Pool (Pool 8)
As of today, March 24th, our first Swivel market has now matured!
And alongside the maturation of our first market, we’re pumped to offer a new, higher yielding alternative with our FeiRari integration! 🏎️🏎️🏎️
Our first FeiRari market is now live! Lend your FEI on our exchange, and stop on by our community with any questions!
At Swivel, we believe markets should be open, and risks should be yours to take (and manage). Rari’s Fuse aligns with this vision and enables anyone to instantly create their own lending and borrowing pool.
This disintermediation then allows individuals to identify exactly their risk tolerance, and allocate capital to pools that are right for them.
The result is a higher-yielding, and more volatile environment, one that is perfect for Swivel to integrate.
Our lenders can expect higher fixed-yields, and in times of volatility, Rari lenders can sell their future yield to protect themselves from rapid shifts in Rari’s rates.
While our rate-traders can expect more volatile and more profitable nToken trading opportunities. Just last week FEI’s rates went from 4.5%→11.5%, a 250% potential profit for any nToken traders.
We chose to integrate Fuse Pool 8, the FeiRari DAO Pool, for a two key reasons. To start, the pool at this point simply has the most liquidity with nearly 50% of Fuse’s TVL sitting in Pool 8, making the pool a clear choice for integration.
However beyond pure liquidity, the quality of the assets in the market is high meaning that the potential risk for our lenders is relatively low, even compared to a low-risk market like Compound.
Pool 8 then represents a perfect compromise that allows our users to get access to high rates without exposing themselves to unnecessary risk.
For our first FeiRari market, it only makes sense that we would launch with the FEI stablecoin.
However, the reasons are beyond sentimental! Not only does the Fei DAO align with our ethos at Swivel, but the FEI stablecoin balances the same thoughtful design tradeoffs (compartmentalized risk) as the Rari Fuse product, making it an equally interesting integration for a yield tokenization protocol like Swivel.
The result is a marginally-riskier lending experience, with a much more dynamic market, and significantly higher lending rates.
Our first FEI stablecoin market will mature alongside our current Compound USDC market on June 24th 2022.
This date coincides with the maturity of FTX’s futures, but moreover ensures our markets mature at the exact same timestamp as our friends at Yield Protocol, thus allowing our lenders to arbitrage rates and bet on their long-term convergence.
Token: FEI Stablecoin Token Address: 0x956F47F50A910163D8BF957Cf5846D573E7f87CA Maturity: June 24th, 2022 Maturity Timestamp (Unix): 1656039600
We’ve got a lot going on with our Rari market launch! Keep an eye out for more community competitions, but moreover a handful of proposals are hitting the polls over the weekend!
We’ve got ~65,000 USDC of fees, and only 150k of SWIV to buy back. So stop by our governance forum to share your thoughts on how we should effectively allocate our fees!
With our first Compound USDC maturing today, March 24th, all zcUSDC tokens are now redeemable 1-1 for USDC, and zcToken holders begin to earn interest on Compound.
Conversely, nTokens for the March 24th maturity no longer generate interest.
For more information, check out our documentation on maturity!
With the launch of Rari, we can now begin to look to other chains!
And all aboard… 🚂🚂 Next up is Rari’s deployment on Arbitrum! We’ll be looking to our community for input over the coming months, however our first stop for scalability will be both the chain with the most liquidity, and the protocol that aligns most with our vision.
We’ll be regularly updating on our progress, so stay tuned for further community and developer updates!
Swivel is the protocol for fixed-rate lending and tokenized cash-flows.
Currently live on Rinkeby and on Mainnet, 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.
Website | Substack | Discord | Twitter | Github | Gitcoin | Careers
Announcing The Launch Of Swivel’s FEI Market On Rari’s FeiRari Pool (Pool 8)
As of today, March 24th, our first Swivel market has now matured!
And alongside the maturation of our first market, we’re pumped to offer a new, higher yielding alternative with our FeiRari integration! 🏎️🏎️🏎️
Our first FeiRari market is now live! Lend your FEI on our exchange, and stop on by our community with any questions!
At Swivel, we believe markets should be open, and risks should be yours to take (and manage). Rari’s Fuse aligns with this vision and enables anyone to instantly create their own lending and borrowing pool.
This disintermediation then allows individuals to identify exactly their risk tolerance, and allocate capital to pools that are right for them.
The result is a higher-yielding, and more volatile environment, one that is perfect for Swivel to integrate.
Our lenders can expect higher fixed-yields, and in times of volatility, Rari lenders can sell their future yield to protect themselves from rapid shifts in Rari’s rates.
While our rate-traders can expect more volatile and more profitable nToken trading opportunities. Just last week FEI’s rates went from 4.5%→11.5%, a 250% potential profit for any nToken traders.
We chose to integrate Fuse Pool 8, the FeiRari DAO Pool, for a two key reasons. To start, the pool at this point simply has the most liquidity with nearly 50% of Fuse’s TVL sitting in Pool 8, making the pool a clear choice for integration.
However beyond pure liquidity, the quality of the assets in the market is high meaning that the potential risk for our lenders is relatively low, even compared to a low-risk market like Compound.
Pool 8 then represents a perfect compromise that allows our users to get access to high rates without exposing themselves to unnecessary risk.
For our first FeiRari market, it only makes sense that we would launch with the FEI stablecoin.
However, the reasons are beyond sentimental! Not only does the Fei DAO align with our ethos at Swivel, but the FEI stablecoin balances the same thoughtful design tradeoffs (compartmentalized risk) as the Rari Fuse product, making it an equally interesting integration for a yield tokenization protocol like Swivel.
The result is a marginally-riskier lending experience, with a much more dynamic market, and significantly higher lending rates.
Our first FEI stablecoin market will mature alongside our current Compound USDC market on June 24th 2022.
This date coincides with the maturity of FTX’s futures, but moreover ensures our markets mature at the exact same timestamp as our friends at Yield Protocol, thus allowing our lenders to arbitrage rates and bet on their long-term convergence.
Token: FEI Stablecoin Token Address: 0x956F47F50A910163D8BF957Cf5846D573E7f87CA Maturity: June 24th, 2022 Maturity Timestamp (Unix): 1656039600
We’ve got a lot going on with our Rari market launch! Keep an eye out for more community competitions, but moreover a handful of proposals are hitting the polls over the weekend!
We’ve got ~65,000 USDC of fees, and only 150k of SWIV to buy back. So stop by our governance forum to share your thoughts on how we should effectively allocate our fees!
With our first Compound USDC maturing today, March 24th, all zcUSDC tokens are now redeemable 1-1 for USDC, and zcToken holders begin to earn interest on Compound.
Conversely, nTokens for the March 24th maturity no longer generate interest.
For more information, check out our documentation on maturity!
With the launch of Rari, we can now begin to look to other chains!
And all aboard… 🚂🚂 Next up is Rari’s deployment on Arbitrum! We’ll be looking to our community for input over the coming months, however our first stop for scalability will be both the chain with the most liquidity, and the protocol that aligns most with our vision.
We’ll be regularly updating on our progress, so stay tuned for further community and developer updates!
Swivel is the protocol for fixed-rate lending and tokenized cash-flows.
Currently live on Rinkeby and on Mainnet, 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.
Website | Substack | Discord | Twitter | Github | Gitcoin | Careers
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