SWETH
swETH
$2,008.11
0.57%
swETH
SWETH
$2,008.11
0.57%
swETH Price Converter
swETH Information
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About swETH
swETH is a liquid staking token by Swell, designed to make Ethereum staking accessible, efficient, and compatible with DeFi. It offers yield-bearing capabilities without requiring the 32 ETH minimum, allowing users to maintain liquidity while earning staking rewards. Alongside rswETH for restaking services, Swell creates a robust staking ecosystem that aligns with Ethereum’s decentralised principles. Swell Labs supports this ecosystem with a focus on security, low fees, and user-centric innovation.
swETH is an ERC-20 liquid staking token (LST) issued by the Swell protocol, a non-custodial Ethereum staking and restaking platform. Swell enables users to stake any amount of Ethereum (ETH) without meeting the 32 ETH minimum typically required for Ethereum validator nodes. In exchange, users receive swETH, a yield-bearing token that represents their staked ETH along with accrued rewards from Ethereum's consensus and execution layers. The protocol allows users to access DeFi applications and earn additional returns while their ETH remains staked.
In addition to swETH, Swell offers rswETH, a Liquid Restaking Token (LRT) designed for use in restaking protocols like EigenLayer. rswETH provides liquidity for restaking participants and eliminates barriers such as the need for 32 ETH or technical expertise to operate a validator node.
The Swell protocol aims to decentralise Ethereum staking, enhance network security, and provide accessible financial tools to users globally. It aligns with Ethereum’s principles of decentralisation and censorship resistance while simplifying participation in staking and DeFi.
swETH allows users to earn staking rewards while retaining the flexibility to:
- Trade or swap tokens on decentralised exchanges (DEXs).
- Provide liquidity in DeFi protocols for trading fees or incentives.
- Use as collateral in lending platforms to borrow other assets.
- Deposit into Swell’s proprietary yield-generating Swell Vaults for enhanced returns.
Swell’s rswETH token expands functionality to EigenLayer, a protocol for restaking ETH to secure decentralised application-specific services (AVSs). rswETH allows users to restake pooled ETH without locking it or managing complex validator operations.
swETH holders can exit their staking positions in two primary ways:
- Primary Market Withdrawals: Withdraw staked ETH through the Swell platform, subject to Ethereum validator exit queues and withdrawal processing times.
- Secondary Market Trading: Swap swETH for ETH instantly on DEXs, albeit at rates that may vary from the primary market.
swETH operates as a reward-bearing token, meaning its value relative to ETH increases over time due to accrued staking rewards. Instead of increasing the token supply, the value of each swETH appreciates, reducing the risk of taxable events in certain jurisdictions.
swETH was created by Swell Labs, an organisation focused on developing secure, accessible, and decentralised financial tools. The company’s mission includes:
- Promoting economic inclusivity by eliminating barriers to staking.
- Supporting Ethereum’s network security and decentralisation through a diverse staking ecosystem.
- Enabling users to engage with staking and restaking without technical complexities.
Swell Labs ensures a security-first approach through:
- Continuous smart contract audits.
- A $250,000 bug bounty programme in collaboration with Immunefi.
- Rigorous selection of professional, experienced node operators to minimise slashing risks and maintain high reliability.
Swell Labs also designed its protocol to be fully open-source, fostering transparency and community trust. Future iterations of the protocol will move towards permissionless participation, allowing anyone to become a node operator using advanced decentralised validator technologies (DVT).
- Liquid Staking Mechanics: Users stake ETH, which is pooled until it reaches the 32 ETH validator threshold. Swell’s registry selects node operators to activate validators in a round-robin process.
- Reward-Bearing Token Model: swETH’s value reflects the staking rewards accrued over time without altering the token balance.
- Restaking for AVS Security: Through rswETH, users can participate in Ethereum’s restaking economy, securing decentralised applications and earning additional rewards.
- Low Fees: Swell charges a competitive 10% fee on staking rewards, distributing the remainder to stakers, node operators, and the protocol’s DAO treasury.
Swell prioritises security with:
- A non-custodial design, ensuring users maintain control over their assets.
- Continuous auditing and monitoring of its smart contracts.
- A curated pool of vetted node operators who ensure reliable validator operation and minimise risks like slashing.
