What is Swell? Simplifying liquid staking and restaking

Ethereum staking has become increasingly popular, with users seeking to earn passive income from their Ether assets. Swell is a project that aims to simplify this process by addressing challenges such as the 32 ETH minimum requirement and the complexity of running a node. This article explores Swell's features, including liquid staking, restaking, and Bitcoin integration for decentralized finance (DeFi).

What is Swell?

Swell is a non-custodial staking protocol designed to make Ethereum staking more accessible and flexible. It allows users to stake any amount of ETH without the need for managing complex infrastructure. Key features of Swell include:

• Liquid staking: Users can stake ETH and receive swETH, a liquid token representing staked ETH plus accrued rewards.
• Non-custodial protocol: Swell gives users control over their assets, reducing risks associated with centralized custodians.
• Decentralization: By lowering barriers to staking, Swell promotes a more decentralized Ethereum network, improving its security and resilience.

How does Swell's liquid staking work?

Swell's liquid staking process is designed to be user-friendly and accessible:

1. Stake your ETH: Users deposit ETH into Swell's staking protocol, which is then pooled and delegated to professional node operators.
2. Receive swETH: In return, users get swETH, a liquid token representing their staked ETH and rewards.
3. Use swETH in DeFi: swETH can be used across DeFi platforms for other opportunities, such as lending, borrowing, or providing liquidity.

Additionally, Swell offers restaking through rswETH, allowing users to restake their ETH into protocols like EigenLayer without meeting the 32 ETH requirement. For Bitcoin holders, Swell provides swBTC, enabling participation in DeFi opportunities while earning native yield.

How does Swell Earn work?

Swell Earn vaults offer a way to gain rewards on digital assets through automated, risk-adjusted strategies:

1. Deposit your assets: Users can deposit various assets, including swETH, rswETH, and swBTC, into Swell's Earn vaults.
2. Automated yield optimization: Assets are deployed across multiple DeFi protocols, with Swell's system automatically allocating funds to optimize returns while managing risk.
3. Earning risk-adjusted returns: The Earn vaults provide risk-adjusted returns by diversifying fund allocation and employing balanced strategies.
4. ERC-4626 tokens: Users receive ERC-4626 tokens like earnETH or earnBTC, representing their share of the vault and accruing value as underlying assets make gains.

Key benefits of Swell Earn include automated management, risk mitigation, and liquidity through redeemable ERC-4626 tokens.

What are SWELL tokenomics?

The SWELL token is a governance token for Swell's decentralized autonomous organization (DAO). Its features include:

• Decentralized governance: SWELL token holders can participate in key decision-making processes.
• Voting power: Each token represents voting influence on the ecosystem's Snapshot platform.
• Restaking for security: SWELL can be restaked on platforms like EigenLayer to enhance security while earning additional rewards.

The token has a maximum supply of 10 billion, distributed as follows:

• Community (35%)
• Team (25%)
• Fundraising (25%)
• Foundation (15%)

What is Swell L2?

Swell L2 is a restaked rollup built on Ethereum, designed to use the Proof of Restake (PoR) mechanism. It allows staked assets to be restaked for additional uses, improving capital efficiency. Key aspects of Swell L2 include:

• Proof of Restake (PoR): Enables staked assets to secure Ethereum and validate additional decentralized services.
• Actively Validated Services (AVSs): Swell L2 supports decentralized services like oracles and bridges.
• Enhanced rewards and liquidity: Users can restake assets to earn additional rewards without sacrificing liquidity.

As of late 2025, Swell L2 has seen significant development and adoption, with numerous projects building on its infrastructure.

Conclusion

Swell represents an innovative approach to combining staking and DeFi. By simplifying Ethereum staking, enabling Bitcoin integration, and introducing tools like Swell L2, the project aims to make staking more accessible and guide users towards greater interaction with DeFi protocols. As the DeFi landscape continues to evolve, Swell's comprehensive approach to liquid staking and restaking positions it as a significant player in the ecosystem, potentially driving further adoption and innovation in the space.

FAQ

What does it mean to be swell?

To be swell in the crypto world means to embrace innovation, growth, and positive momentum. It reflects the rising tide of blockchain technology and its potential to transform finance and beyond.

Why do people say "swell"?

People say "swell" as a play on words, combining "s" from Stellar and "well" to express optimism about the Stellar ecosystem's growth and potential.

Is swell a compliment?

No, Swell is not a compliment. It's a cryptocurrency project focused on liquid staking for Ethereum, aiming to improve decentralization and liquidity in the ETH staking ecosystem.