Swell Ethereum (swETH)

Swell Ethereum (swETH) is a token (LST) on the protocol, representing staked on the Ethereum network. validates the underlying ETH. swETH functions as a repricing token, increasing in value over time as staking rewards accumulate. [1]


Swell Ethereum (swETH), an token, mirrors a user’s ETH on the , encapsulating rewards, penalties, MEV, and execution layer ‘tips.’ While its quantity remains constant, its value grows with on-chain rewards accumulation, with total gains realized upon trading on the secondary market or permitted withdrawals post-Ethereum Shanghai upgrade, defining it as a reward-bearing token tracked via an exchange rate. decentralizes staking responsibilities between stakers and operators, enabling stakers to deposit any amount below 32 ETH and receive a liquid token representing their staked ETH and accrued rewards. This token operates akin to ETH in , facilitating transfers, collateralization for borrowing, and provision while earning staking rewards, thus broadening participation in securing the Ethereum blockchain. [2]

Use Cases

swETH holders have various options to utilize their staked : [2]

  • Exit Staking: They can sell their swETH for ETH on a , realizing gains based on the exchange rate.
  • Swell Vaults: Deposit swETH into Swell’s in-protocol vaults to earn extra yield through .
  • Provide Liquidity: Utilize external DeFi integrations of swETH to become a , earning additional yield from and liquidity mining incentives.
  • Lending: Earn extra yield by supplying swETH to lend/borrow DeFi protocols.
  • Borrowing: Use swETH as to borrow assets from lending protocols.
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Swell Ethereum (swETH)

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April 16, 2024


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