On the 18th of December 2023, swETH was added to EigenLayer, enabling you to restake your swETH to earn additional yield and rewards in the form of Pearls and Restaked Points!
In this guide, we’ll walk you through the process of restaking your swETH on EigenLayer, and answer the most frequently asked questions.
1. Get swETH
Navigate to the Swell app and stake your ETH. There is no minimum requirement for ETH staking on Swell.
If you are new to liquid staking, we have a ‘How to Stake ETH with Swell’ video tutorial that will help you navigate the Swell app and start your staking journey.
As the video shows, staking on Swell is as simple as swapping on Uniswap. You just connect your wallet, enter the amount of ETH you wish to stake, and then confirm the transaction. Note that only minting directly through the app qualiies for the 30 Pearl per swETH bonus. Purchases of swETH on DEXs do not qualify.
If you already hold swETH in your wallet, you can skip this step.
2. Go to EigenLayer
You can deposit swETH directly into the Swell Ether pool on EigenLayer.
Simply connect your Web3 wallet and ensure that you are connected to Ethereum Mainnet. Then locate the Swell Ether pool.
3️. Deposit your swETH
Input the amount of swETH you want to restake and click ‘Next’.
If this is your first time depositing on EigenLayer, you will need to approve token spending. This gives EigenLayer permission to move the swETH from your wallet.
Set a spending cap on your wallet, click ‘Next’ and then ‘Approve’.
4️. Confirm your swETH deposit
Once the approval transaction is confirmed, you will be prompted on the EigenLayer app to confirm your swETH deposit.
If your restaking transaction is successful, you will receive a confirmation message and your restaked balance will show on the EigenLayer dashboard.
5️. Monitor your rewards.
Restaking swETH on EigenLayer provides rewards from both EigenLayer and Swell.
EigenLayer Rewards
You can monitor your EigenLayer Staking Rewards and Restaked Ratio on their dashboard. You will earn Restaked Points based on your total EigenLayer restaking contribution.
Learn more about Restaked Points in the EigenLayer docs.
Swell Rewards
In addition to the Restaked Points, Swell is offering Pearl rewards to swETH restakers on EigenLayer. These include:
- 30 Pearl bonus per swETH minted through the Swell app (pro rata for smaller amounts)
- 30 Pearl bonus per swETH restaked on EigenLayer (pro rata for smaller amounts)
- Ongoing Pearls at the normal rate for restaking swETH on EigenLayer
You can monitor your Pearls on the Voyage dashboard.
Got questions about EigenLayer or restaking? Check the FAQ below, and join our community in the Swell Discord where the team is happy to answer questions about the restaking process!
FAQ
What is EigenLayer?
EigenLayer is a restaking protocol that acts as a marketplace for decentralized trust. It enables any service, like bridges or oracle networks, to use restaked ETH for security, rather than needing to bootstrap their own validators. As a restaker, you stand to gain extra rewards for securing these other projects, but also take on additional risk of penalties through slashing.
Is there a limit to how much swETH can be restaked?
swETH deposits on EigenLayer are uncapped.
Is there a lockup period when restaking swETH on EigenLayer?
No, there is no lockup period, however keep in mind that once you unstake from EigenLayer there is a seven day waiting period before you can withdraw your funds.
How is swETH different from rswETH?
swETH is a Liquid Staking Token (LST) that must be deposited in EigenLayer to earn EigenLayer Points and restaking rewards. EigenLayer deposits are capped and only opened at certain times.
rswETH is a Liquid Restaking Token (LRT) that earns EigenLayer Points natively, while staying liquid for use in DeFi. Native restaking is uncapped on EigenLayer, meaning you can restake ETH to get rswETH at any time.
Is there a minimum amount that can be restaked?
No, there is no minimum amount that is required to restake your swETH.
Important note: By interacting with smart contracts, you acknowledge and accept the inherent risks, including code vulnerabilities that may lead to unintended consequences, loss of funds or unauthorized access; network risks impacting performance and reliability; legal and regulatory uncertainties; potential for human error resulting in irreversible losses; limited or no recourse through traditional legal channels; privacy risks arising from publicly accessible blockchain networks; interoperability issues among platforms and networks; and layered risks in DeFi strategies, which can compound complexity and consequences when combining multiple dApps. Exercise caution and conduct thorough research before participating in smart contract-related activities.
