Swell restakers are looking towards a new restaking ecosystem set to emerge on Swell L2.
That’s the headline news of the last two weeks, but Swell has also passed technical milestones including the enabling of swETH withdrawals, and seen more ecosystem expansion with more opportunities for rswETH.
Slip beneath the waves with us to get the latest from Swell.
✨Swell is Building the L2 for Restaking
Restaking summer is dawning!
Swell is collaborating with AltLayer, Chainlink and EigenDA to launch our very own Layer 2 for restaking, built on Polygon’s zkEVM technology.
Swell’s rollup will take the form of a ‘restaked rollup’, offering native restaking yield, increased scalability and lower fees, along with flywheels for LRTfi. The rollup will also come with a range of AVS’ that will augment its security and decentralisation by offering core services such as decentralised sequencing and verification, as well as faster finality by leveraging EigenLayer’s restaking mechanism.
Pre-deposits open soon!
Read more about our upcoming L2
🚢 swETH Withdrawals are Live!
With the launch of Barracuda, stakers can now unstake their swETH for ETH through the Swell app at the primary market rate.
In the coming weeks, the next upgrade for rswETH will enable you to directly restake swETH in exchange for rswETH, providing a quick and economical way to move between swETH and rswETH, reducing gas costs and removing reliance on the secondary market.
rswETH withdrawals are also set to follow with the launch of rswETH v2.
Read the blog post for more info
🎙️Community AMA
This month we were joined by Angel from Zircuit for our Community AMA in the Swell Discord. We dug into some community questions and discussed depositing swETH and rswETH in Zircuit.
In case you missed it, here are the top three questions from the event:
1. Are there plans to allow users to swap swETH for rswETH?
In the coming weeks, our v2 upgrade will allow you to directly restake swETH in exchange for rswETH. This will be faster and more gas-efficient than withdrawing and restaking.
2. What are the risks involved with Swell’s L2?
Swell L2 will have the same risks as anything else in DeFi, but will be protected by our security-first approach to development and auditing. These risks include:
- Bugs in the Chain CDK: We we have minimized this by using the battle-tested Polygon CDK (Chain Development Kit).
- Smart contract exploits: This is a risk that permeates all chains and once users are on the chain they will have to do their own due diligence and risk management to ensure they are interacting with safe and audited smart contracts.
3. Do you plan to work with sequencers in the future?
We are primarily going to use AltLayer’s SQUAD.
Swell will be one of the first instances of restaked rollups in action and will be powered by three key AltLayer products: MACH (for faster finality), VITAL (for decentralized verification) and SQUAD (for decentralized sequencing). Each of these core services will operate as an AVS and will borrow security from Ethereum via EigenLayer’s restaking mechanism.
💎Vector Reserve Minting Campaign
We have launched a minting partnership with Vector Reserve for Swell (re)stakers to double up their minting bonus.
Until Tuesday 26th of March, you can earn 30 Pearls for every 1 swETH or rswETH minted on the Swell app, and an additional 30 Pearls + 2x vPoints when you use it to mint vETH.
🙋Twitter Spaces and Podcasts
Navigating the Risks and Rewards of Actively Validated Services | Space
In this recent space we were joined by Gauntlet, Hyperlane, Omni Network and LAGRANGE to discuss the risks and rewards of AVS’ and how this will play into the next phase of rswETH’s evolution.
LRT Roundtable | Revelo Space
Our Head of Growth Baley joined the team from KelpDAO, Renzo, Etherfi and Inception to discuss the state of LRTfi, restaking risks and Swell’s future plans in this Space.
Liquid Restaking Tokens | Balancer Space
Abi joined the team from Balancer and Renzo to discuss Swell’s LRT rswETH.
Bing Ventures: What can we expect from restaking?
Founder Daniel joined Bing Ventures to chat liquid restaking tokens:
📣 Top Tweets
Sassal0x discusses Swell’s recent L2 announcement on the Daily Gwei.
Aynenknk highlights how Swell restakers can benefit from depositing on Karak.
BREAD breaks down the bull case for SWELL in this long tweet.
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 following us on Farcaster, Twitter and DeBank.
