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Swell ethereum

Swell Ethereum (SWETH)


Swell Ethereum (swETH) is an ERC-20 token that represents staked ETH on the Ethereum network, facilitated by the Swell protocol. This liquid staking token operates by mirroring a user's staked ETH, including accumulated rewards and other elements such as MEV and execution layer tips. While the amount of swETH a user holds remains unchanged, its value appreciates over time due to the accumulation of on-chain rewards. Holders can realize these gains by trading swETH on secondary markets or by withdrawing it after the Ethereum Shanghai upgrade. SwETH exemplifies a reward-bearing token, its worth tracked via an exchange rate.

swell-ethereum background
Ticker SWETH
Category Arbitrum Ecosystem
Website https://www.swellnetwork.io/
Twitter @swellnetworkio
Reddit https://www.reddit.com/r/SwellNetwork/
Contract Addresses
ethereum 0xf9...78Copied!
arbitrum-one 0xbc...18Copied!

Liquid staking, as enabled by swETH, decentralizes the staking process, distributing responsibilities between stakers and node operators. Stakers can deposit amounts less than the traditional 32 ETH threshold and receive a liquid token representing their staked ETH and accrued rewards. This token can function similarly to ETH within DeFi ecosystems, facilitating transfers, collateralization for borrowing, and liquidity provision, all while earning staking rewards. This broadens the scope of participation in securing the Ethereum blockchain.

Use cases

SwETH holders have several options to maximize the utility of their staked ETH:

Exit staking

Holders can sell their swETH for ETH on decentralized exchanges, realizing gains at the prevailing Swell exchange rate.

Swell Vaults

Users can deposit swETH into Swell’s in-protocol vaults to earn additional yield through liquidity mining.

Provide liquidity

SwETH can be used in external DeFi integrations, allowing holders to become liquidity providers. This enables them to earn extra yield from trading fees and liquidity mining incentives.

Lending

By supplying swETH to lending and borrowing DeFi protocols, holders can earn extra yield.

Borrowing

SwETH can be used as collateral in lending protocols to borrow other assets.