Are you ready to restake?
We’re busy preparing for another bout of swETH restaking, with EigenLayer deposits set to open for four days only from Jan 29th. Meanwhile, the development of our liquid restaking token (LRT) rswETH is coming along swimmingly, and will offer another opportunity to restake without locking your liquidity.
Catch up on the highlights in this fortnight’s Deep Dive, which includes answers to questions from our recent Community AMA.
💎 swETH restaking on EigenLayer
EigenLayer will reopen deposits on the 29th of January at 20:00 UTC. Restaking will only be available for four days and remains capped at 200k ETH. This means there is only ~85k left!
We have reintroduced the exclusive minting and restaking bonus for this event. You can collect these Pearls rewards for minting and restaking:
- 30 Pearls for every swETH minted through the app. Note that swETH purchased on the secondary market is not eligible for the bonus.
- 30 Pearls for every swETH restaked on EigenLayer
- Ongoing Pearls at the standard LPing rate + EigenLayer Restaking Points
Note: Pearl rewards are awarded pro rata; if you mint or restake less or more than 1 swETH then you will receive the proportional amount based on your deposit.
Read our EigenLayer restaking blog post
Mint swETH to prepare for deposits to reopen!
🌊Swell set to launch rswETH soon!
Restaking is expected to herald a new era for Ethereum.
Swell is will offer access to restaking rewards with rswETH, a native Liquid Restaking Token (LRT) that gives you uncapped access to EigenLayer without needing to lock your liquidity.
Once live, you will be able to restake ETH on the Swell app under the ‘Restake’ tab, and receive rswETH in return. By simply holding rswETH you will earn:
- Staking yield from the Rewards earned by staking your ETH in Swell.
- Pearls. Swell’s pre-token point system that represents your share of Swell’s upcoming airdrop. These will be redeemable for $SWELL tokens at TGE, scheduled for late Q1.
- EigenLayer Restaked Points, which measure your contribution to the shared security of the EigenLayer ecosystem.
- Future restaking rewards, when EigenLayer onboards the first Actively Validated Services to mainnet.
You will also be able to earn additional yield by using your rswETH in DeFi protocols with rswETH expected to offer the same extensive range of DeFi opportunities as swETH.
Need to brush up on your understanding of restaking before the launch of rswETH? Check out our recent blog posts:
🧑💻KyberSwap exploit compensation
If you were affected by the KyberSwap exploit of the swETH pool, you can now connect your wallet, pass KYC, and choose your form of compensation.
📈 Swell surpasses $400M in TVL and 170,000 staked ETH
The recent wave of growth has helped push Swell towards the ranks of the top 30 DeFi protocols.
📱Swell is now on Farcaster
Swell has officially joined Farcaster, the decentralized social network app! Be sure to follow us to stay up to date on the latest happenings in the Swell ecosystem.
🎙️January Community AMA
Earlier this month, we hosted our monthly Community AMA in theSwell Discord. We opened the floor to community members in advance allowing them to submit any questions they may have for the team that were answered during the event.
In case you missed it, here are the top questions from the call!
1. How much longer will Pearls for Equilibria and Penpie voting last?
There is no set end date for voting rewards on Equilibria and Penpie. The final cut off date would be the TGE, at which point Pearls will be redeemable for SWELL. At this point there may be different rewards introduced for voters, but you will have to wait and see.
2. What use case will $SWELL have besides it being a governance token?
SWELL will have utility within the protocol, enabling holders to take decisions on protocol governance and boost their yields. Swell's tokenomics will be based on the vetokenomics model, which is arguably the most proven and successful tokenomics system in all of DeFi.
3. Does the swETH depeg affect swETH on Swell or EigenLayer?
To be clear, there is currently no depeg, and swETH is trading on the secondary market at more or less the same price as on the primary market. This can be viewed on the Dune dashboard in the chart showing the difference between the swETH primary and secondary rate difference.
If there was to be a depeg event due to market conditions drastically changing, this would not affect swETH on EigenLayer. We would expect such a depeg to be short-lived as Swell has an effective backstop in the form of the Super swETH vault. We'll also be enabling withdrawals very soon.
4. Restaking seems to be both an advantage and disadvantage. What risks are associated with restaking and what does Swell think about them?
There are two major risks associated with restaking:
- Slashing
- Picking the right AVS
The way we manage this is by having really strong partners and mechanisms in place. For example with slashing, we are working with the operators that have a very strong performance on the beacon chain and on the EigenLayer testnet. Security and risk management is the priority in the development of rswETH.
5. What application of rswETH are we most excited about?
All of them! rswETH will build on the wide ranging integrations of swETH to be available in as many places in DeFi as possible.
💧swETH Liquidity
swETH/WETH Pool on PancakeSwap
Earlier this week we deployed our new swETH/WETH pool on PancakeSwap. LPers can single side deposit WETH to earn $CAKE, Pearls and trading fees, with liquidity automatically managed by Bril Finance.
LP in the swETH/WETH pool on PancakeSwap
🙋Twitter Spaces and Podcasts
DeFi Hour: Top Trends of 2024 | Curvance Twitter Space
Our very own Head of Growth Genie joined the Curvance team on their latest Twitter Space to discuss Swell and the top trends of 2024.
Managing the Risks of Restaking | Twitter Space
In our most recent Twitter Space we were joined by gigabrains from Cubist, Gauntlet and Chaos Labs to discuss the management and mitigation of restaking risks.
📣 Top Tweets
Swell TVL has tripled since early December!
The liquid staking narrative is reaching new heights! Stacker1 breaks down the best airdrop play with Swell and EigenLayer.
swETH yields on Pendle are looking extra juicy!
Join the Swell Community
Expect to receive your next edition of the Swell Deep Dive in two weeks.
Until then, stay up to date by joining us in Discord and on Twitter.
