stkSWIV -- A Core Mechanic of the Swivel Safety Module

I’d like to quickly introduce stkSWIV, the deposited equivalent of the SWIV token, when utilized and deposited in the Swivel Safety Module.

The stkSWIV token follows much of the same model as other contemporaries (e.g. stkAave (https://docs.aave.com/developers/v/1.0/developing-on-aave/the-protocol/safety-module-stkaave), xSushi (xSUSHI FAQ - Sushi)), with one major improvement: ERC4626 compliance.

Unlike others, the stkSWIV token is ERC4626 compliant, and an initial implementation is available at: https://github.com/Swivel-Finance/SSM/blob/main/stkSWIV.sol

This means that should there be sufficient liquidity, it is easily possible to also provide markets for the yield tokenization of stkSWIV, creating nstkSWIV and zcstkSWIV, enabling enhanced staking capabilities for our insurance module depositors, beyond that of any contemporaries.

This thread is an introductory discussion to explore any additional changes or concepts that others may feel are appropriate to add to the stkSWIV facet of the Swivel Safety Module.

For an introduction to the SSM, see our initial introduction blog: https://medium.com/swivel-finance/the-swiv-token-swivel-dao-the-ssm-dd8ce33f0b36

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In the grand scheme, does this eventually replace the Liquidity incentives program as the best place to earn with stake SWIV, or would different programs ever run concurrently?

This might be a major innovation, but I don’t know much about it, and I’ll still upvote it for you.

Which reputable company has validated “The Swivel Safety Module”?
Is its security score high?

Well really theyre different.

Staking an LP involves staking 2 tokens generally, and you are taking the risk that you sell of your swiv when you stake it (which a lot of folks might not want).

Especially on v3, LPing is really an “active” activity rather than a passive program, vs a deposit like this which is a person “actively” insuring a pool, but that is active in terms of the capital, and the person themselves can be much more passive.

This allows people to support the protocol rather than just stake the token as liquidity and hope it doesnt range too much in price

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Awesome, this is super helpful. I do understand the grand scheme that this sort of staking is different and represents a different kind of ‘skin in the game’ to make Swivel have strong foundations. I’m definitely in favor of that!