Following a poll of community preferences, we've decided to hold weekly Community AMA events at alternating times: one for the Aquanauts in Europe and Asia, and another for those in the US.
The first of these AMAs was held on Friday, and we welcomed Aquanauts from countries across mainland Europe andt all the way to East Asia.
During the AMA, we discussed the Discord Roles program and addressed a couple of burning questions about swETH and the design of Swell. In case you missed it, here are the top five questions:
1. How do I get a Discord role?
You can earn a Discord Role by making memes, writing tweets, joining AMA sessions, and more.
2. Will I be able to hold swETH in a hardware wallet.?
Yes, swETH is an ERC-20 token, making it compatible with the vast majority of Ethereum wallets — including cold storage solutions such as Ledger and Trezor. Simply hold swETH in your chosen wallet, and your staking rewards will accrue to the value of the token.
Find out how this works in the Litepaper.
3. Can I deploy swETH to other protocols from within Swell?
Following the mainnet launch, we will be introducing vault functionality that enables stakers to compound their yields by depositing their swETH to other DeFi protocols, from directly within the Swell dApp.
The first integration will be with Aura Finance, a protocol built on top of Balancer to provide maximum incentives to Balancer liquidity providers and stakers. If anyone is not familiar with them, we highly recommend checking them out.
Eventually, we will be building out a range of vaults that offer access to different yield-earning opportunities from within Swell — including concentrated liquidity pools, borrowing and lending markets, and more.
4. Imagine that two people hold the same number of swETH tokens. The underlying value of their tokens may not be the same — is that correct?
That's not correct. As a reward-bearing token (also referred to as repricing token) the repricing will be consistent across all swETH tokens as determined by the exchange rate.
This exchange rate keeps track of the relative value of:
1. Total ETH staked on the consensus layer including rewards, and;
2. The original amount of ETH that has been staked.
As such, the quantity of swETH tokens you hold won't change as you accrue rewards, but the value of the tokens will change. So, overall, the price of swETH will fluctuate according to the price of ETH, plus the rewards that have accrued to the pool over time.
We will be making all of this crystal clear through a portfolio page, which will break down your position including all the details of when you entered and exited, and the rewards you have accrued.
There are also many other advantages of reward-bearing tokens, including tax efficiency. You can explore them in our recent Twitter thread.
5. Have swNFTS been abandoned?
swNFTs will be deprecated with the previous Swell architecture.
If you're a swNFT holder, you will be issued with a commensurate amount of swETH. The amount will be determined by the position which your swNFT currently denotes,
plus any accrued rewards over time. No action is required on your part.
swNFT holders are also eligible for an OG Discord role.
Join the Aquanauts
Follow us on Twitter and join the Swell Discord to make sure you don't miss our next AMA!