swETH

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.

swETH holders can exit their staking positions in two primary ways:

1. Primary Market Withdrawals: Withdraw staked ETH through the Swell platform, subject to Ethereum validator exit queues and withdrawal processing times.
2. Secondary Market Trading: Swap swETH for ETH instantly on DEXs, albeit at rates that may vary from the primary market.

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).

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.