Victor Ugochukwu · Dec 14, 2020 . 5min read
Tether offers help to recover $1M lost to Swerve Contract address
A user who mistakenly sent $1M into Swerve contract may have heaved a huge sigh of relief when Tether offered to recover the funds.
By Victor Ugochukwu · Sep 8, 2020 . 6min read
A user who mistakenly sent $1M into Swerve contract, a new DeFi project may have heaved a huge sigh of relief when Tether offered to recover the funds.
In a recent tweet, Paolo Adroino, CTO at Tether hinted his company should be able to recover the funds asking the person to open a ticket to support. It all started when a Twitter user with the handle @Crypto_Plato made a tweet accompanied with a screenshot,
Apparently, the user must have tried to take advantage of the latest yield farming project which launched recently. Swerve Finance is an unaudited DeFi clone of Curve Finance which launched barely four days back. It posted via its official handle:
Introducing Swerve, a fork of $CRV with 100% of the token distribution allocated to liquidity providers. $SWRV is a fair deployment for all honest hard working farmers in #DeFi.
Launching soon, stay tuned. https://t.co/9WxhiBCzRV
Without really any difference asides just being another DeFi protocol fork, Swerve Finance appears to be capturing huge liquidity. Within just four days of launch, Swerve now boasts of $394 million in TVL as of the time of writing.
With offering an APY ranging between 85% to 532%, hungry yield farmers will find it difficult to look away.
It’s, therefore, not surprising that a user could throw in as much as $1 million into an unaudited DeFi project. Will Tether recover the funds from Swerve contract address is still not 100% certain until Adroino fulfils his promise.
In the meantime, Curve Finance which was forked appears to be trolling the user who lost funds by tweeting:
At least, $USDT is 1M more solvent now
Many are calling out Tether’s CTO tweet in trying to recover funds from Swerve contract as anti-decentralization
Even though Tether may be out to do some good, many are saying its proposed action is against the tenets of decentralization. Technically, Tether’s action is tantamount to a rollback. And as blockchain transactions are irreversible, some have expressed their concerns. For instance, @tomuky tweeted,
If they can do it, what if they do something like it again without permission. That’s where it can be bad
However, the owner of the funds could care less about decentralization if Tether is really able to recover funds it mistakenly sent to Swerve contract.
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