Swell

What is Swell?

Swell is a non-custodial liquid staking protocol for Ethereum that allows users to stake ETH and receive swETH, a yield-bearing liquid staking token. Launched in 2023, Swell differentiates itself through a focus on decentralization, permissionless node operator onboarding, and native integration with restaking protocols like EigenLayer. The protocol has grown rapidly, attracting billions in deposits and establishing itself as a significant player in the liquid staking landscape.

What makes Swell particularly interesting is its approach to liquid staking as a foundation for restaking. The protocol launched rswETH (restaked swETH) to allow users to earn additional yield through EigenLayer's Actively Validated Services (AVSs) while maintaining the liquid staking benefits. This forward-thinking architecture positions Swell as a comprehensive staking solution that evolves with the Ethereum ecosystem.

Swell operates with a distributed validator technology (DVT) integration roadmap and emphasizes community governance through the SWELL token. The protocol has attracted significant institutional and retail interest, particularly from users looking to stack yields through staking plus restaking strategies.

Key Statistics

• Total Value Locked: $2B+ in staked ETH
• Main Token: swETH (liquid staking token)
• Restaking Token: rswETH (restaked swETH)
• Networks: Ethereum mainnet
• Node Operators: Professional permissionless set
• Security Audits: Sigma Prime, Mixbytes audits
• Governance: SWELL token (launched 2024)

How Swell Works

The Staking Process

When you stake ETH with Swell:

1. Deposit ETH into the Swell protocol
2. Receive swETH representing your staked position
3. SwETH appreciates in value as staking rewards accrue
4. Underlying ETH is staked by node operators
5. Unstake anytime through withdrawal queue or DEXs

Understanding swETH

swETH is a value-accruing token, meaning its value increases relative to ETH over time as staking rewards accumulate:

• swETH starts at 1:1 with ETH at protocol launch
• Exchange rate grows as rewards accrue (~3-4% annually)
• No rebasing complexity
• Compatible with all DeFi protocols
• Withdrawable through queue or DEX swaps

Restaking with rswETH

Swell's restaking token adds additional yield layers:

1. Deposit swETH to receive rswETH
2. Underlying swETH is restaked on EigenLayer
3. Earn staking + restaking + points
4. Potential AVS rewards as ecosystem matures

Step-by-Step: Using Swell

1. Visit app.swellnetwork.io
2. Connect your Ethereum wallet
3. Enter ETH amount to stake
4. Approve and confirm transaction
5. Receive swETH immediately

1. Navigate to restaking section
2. Deposit swETH
3. Receive rswETH tokens
4. Earn stacking yield + points

1. Request withdrawal through protocol
2. Wait for processing (typically 1-7 days)
3. Claim ETH once ready
4. Or swap instantly on DEXs

Track your Swell positions alongside other protocols with Fensory to monitor yield performance across your portfolio.

Swell Fees

Current APY Ranges

Key Features

1. Value-Accruing Token

swETH uses the value-accruing model preferred by many DeFi protocols, avoiding rebasing complexity.

2. Native Restaking

rswETH provides seamless restaking exposure without manual EigenLayer interaction.

3. Decentralization Focus

Permissionless node operator onboarding with DVT integration roadmap.

4. Points Program

Active points program rewarding early adopters and liquidity providers.

5. DeFi Integration

swETH accepted across major protocols including Aave, Pendle, and DEXs.

6. Institutional Grade

Security-focused architecture attracting institutional deposits.

Swell vs Competitors

Risk Considerations

Smart Contract Risk

Swell contracts have been audited but are newer than established protocols. The additional restaking layer adds contract complexity.

Slashing Risk

Node operators could face slashing for misbehavior, impacting staker returns. Swell works to select reliable operators.

Depeg Risk

swETH could trade below ETH value in extreme conditions, though arbitrage typically maintains the peg.

Restaking Risk

rswETH introduces additional smart contract and slashing risks through EigenLayer exposure.

Liquidity Risk

As a newer protocol, swETH may have less DEX liquidity than larger competitors in stress scenarios.

Regulatory Risk

Liquid staking faces evolving regulatory scrutiny in various jurisdictions.

Frequently Asked Questions

swETH is the base liquid staking token earning Ethereum staking rewards. RswETH is the restaked version that also earns EigenLayer restaking rewards and points.

swETH maintains a soft peg through arbitrage and the withdrawal mechanism. The exchange rate only goes up as rewards accrue.

Swell uses a permissionless node operator set and is working toward DVT integration. It's more decentralized than some alternatives but governed by the SWELL token.

Yes, swETH is accepted across major protocols including lending platforms, DEXs, and yield aggregators.

Points reward early adopters and may convert to SWELL tokens or other benefits. Earn through staking, restaking, and providing liquidity.

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