Swell Network (SWELL): Powering Ethereum Liquid Staking

What if you could stake Ethereum — earn yield — and still trade or use your assets freely? That’s the promise of Swell Network. As ETH staking grows, many holders face the trade‑off between security and liquidity. Swell flips that narrative. With the SWELL token at its core, Swell delivers liquid staking, restaking, and even a custom Layer‑2 network for maximized flexibility. Whether you have just a fraction of an ETH or more, Swell Network lets you stake — receive tradable tokens — and plug into DeFi or governance. It’s staking reimagined: flexible, user‑friendly, and built for decentralization. In this guide, we’ll break down exactly how SWELL works, why SWELL matters, and what potential it holds for ETH holders and DeFi users alike.

For more insights and updates on the latest trends in cryptocurrency, be sure to check out our Nifty Finances platform, which serves as your gateway to smarter financial decisions in the digital economy

What is Swell Network? Liquid Staking & Restaking Made Simple

Swell Network is a decentralized, non‑custodial protocol that makes staking and restaking Ethereum (ETH) accessible to everyone — no 32 ETH minimum, no technical validator setup, and full liquidity via liquid tokens.

Swell Network is a liquid staking and restaking platform built for the Ethereum ecosystem. Rather than requiring users to deposit the full 32 ETH and run a validator node, Swell Network allows users to stake any amount of ETH. In return, users receive a liquid staking token — called swETH — which represents the user’s staked ETH plus ongoing staking rewards.

Because swETH is ERC‑20, it remains liquid: you can trade it, use it in DeFi protocols, or hold it while earning ETH staking yields. This flexibility helps solve one of staking’s major pain points: the trade‑off between staking returns and liquidity.

Swell Network also supports “restaking” — a layered approach whereby staked ETH can be reused to secure additional network services or decentralized applications. For this, Swell Network issues a token called rswETH, a liquid restaking token that bundles both the original ETH staking yield and restaking rewards (e.g., from services secured via protocols like EigenLayer).

Thus, Swell Network gives both staking and restaking — with liquidity and flexibility — without forcing users to commit large capital or manage validator infrastructure.

How swETH & rswETH Work: Tokenized, Yield‑Bearing & Liquid

When you deposit ETH to Swell:

• You receive swETH: an ERC‑20 liquid staking token that appreciates over time. The appreciation reflects earned staking rewards on the underlying ETH stake.
• swETH remains liquid — you can trade, swap, lend, or use it in other DeFi protocols while still earning staking yields.

If you choose to restake:

• You exchange swETH for rswETH, the restaked liquid token. rswETH represents your ETH stake — now also delegated to restaking services (e.g., via EigenLayer), earning additional yield beyond normal staking.
• rswETH continues to be liquid and tradable, even while underlying assets are restaked.

This dual-token model helps users maximize yield (staking + restaking), while avoiding the traditional liquidity lock associated with staking ETH directly or running validators.

Non‑Custodial, No 32 ETH Minimum & User Control

One of the strongest value propositions of Swell Network is accessibility and decentralization. Because Swell is non‑custodial, users retain control over their keys and funds — there’s no need to trust a centralized custodian.

Importantly, Swell Network removes the common barrier of “32 ETH minimum” required to run an Ethereum validator. That means even small ETH holders — or those who prefer not to run infrastructure — can participate.

Because of this flexibility and inclusivity, Swell Network democratizes access to Ethereum staking and restaking — broadening participation to a wider base of users while contributing to overall network decentralization and security.

Simplified Staking + DeFi‑Friendly Flexibility

• Liquidity + Yield: With swETH and rswETH, users don’t have to choose between staking returns and liquidity. They earn yield and maintain the ability to trade or deploy their token.
• Restaking Bonus: Restaking via rswETH can generate additional returns beyond base staking yield, leveraging ETH for deeper DeFi/AVS ecosystems.
• No Barriers: No need for large ETH holdings or technical validator setup — open to everyday users.
• User Control & Security: Non‑custodial protocol ensures funds remain under user control.
• DeFi Integration: Liquid tokens integrate easily with DeFi — lending, borrowing, liquidity provision, and more remain open with tokenized stakes.

Swell Network turns ETH staking into a flexible, accessible, DeFi‑friendly experience — transforming rigid staking into fluid capital that works for you.

The SWELL Token — Fuel, Governance & Incentives

SWELL Network is the governance and utility token of the Swell Network ecosystem. It powers Swellchain transactions, enables participation in community governance via Swell DAO, and supports staking, restaking, and broader ecosystem incentives.

SWELL as a Governance Token

SWELL serves as the backbone of decentralized governance within the Swell Network. Token holders participate in community-driven decision-making through the Swell DAO, where proposals related to protocol upgrades, fee structures, staking mechanics, and new integrations are discussed and voted on.

This governance model ensures that the Swell Network ecosystem evolves in line with the interests of its community, rather than being dictated solely by developers or centralized entities. By holding SWELL, users gain a direct voice in shaping the protocol’s future, aligning incentives across participants and fostering a collaborative, decentralized ecosystem.

SWELL as Native Gas Token on Swellchain

Swell operates a Layer‑2 blockchain solution, Swellchain, designed for efficient, scalable Ethereum staking and restaking operations. SWELL Network functions as the native gas token on Swellchain, meaning all on-chain transactions — including staking, restaking, NFT trades, and swaps — require SWELL Network to pay transaction fees.

Using SWELL as gas reduces reliance on ETH for L2 activity and creates a self-sustaining network economy. It also encourages active participation, as users engaging in staking, restaking, and DeFi operations directly consume SWELL, linking token utility to protocol usage.

SWELL Supports Protocol Incentives

Beyond governance and gas fees, SWELL Network underpins incentive mechanisms designed to grow the SWELL Network ecosystem:

• Restaking Rewards: SWELL tokens can be distributed as part of yield strategies for rswETH holders who participate in restaking, enhancing total returns beyond base ETH staking rewards.
• Ecosystem Development: Allocations of the SWELL Network can fund partnerships, grants, or liquidity incentives, helping the SWELL Network expand its ecosystem and onboard new users.
• Staking-Related Incentives: SWELL Network can also be used to reward active stakers, promote liquidity in Swell marketplaces, and encourage engagement with staking and restaking features.

By aligning token issuance with both utility and community participation, SWELL creates a feedback loop: usage and governance drive value, which in turn incentivizes further adoption and contribution.

SWELL is not just a governance token or a payment tool — it is the fuel that powers the entire Swell ecosystem:

• Provides holders with governance rights and a voice in DAO decisions.
• Acts as the operational currency on Swellchain, enabling seamless Layer‑2 transaction processing.
• Supports reward systems that encourage staking, restaking, and network participation.
• Aligns incentives between developers, stakers, and the community, fostering sustainable ecosystem growth.

For users and investors, holding SWELL represents both participation and influence. It integrates economic utility, protocol security, and community governance into a single token, making it central to Swell Network’s vision of decentralized, liquid, and restakable ETH.

Architecture & Swellchain — Restaking L2 for Scalability

Swellchain is a restaking-powered Layer‑2 network built on the OP Stack, designed to combine Ethereum-level security with high scalability, cross-rollup interoperability, and integrated economic incentives. Its dual-token model balances staking liquidity, governance, and network utility.

Overview of Swellchain

Swellchain is Swell Network’s Layer‑2 blockchain solution that enables restaking at scale. It is built atop the OP Stack — the modular framework used for Ethereum Layer‑2 rollups — and employs a Proof of Restake mechanism. This allows staked ETH to be reused (restaked) to secure additional services and networks without sacrificing liquidity or rewards.

The network is purpose-built to accommodate high-throughput DeFi applications, liquid staking, and restaking activities, while maintaining a seamless connection to Ethereum’s mainnet. By enabling restaked assets, Swellchain unlocks additional yield opportunities and fosters ecosystem efficiency.

Technical Design & Core Components

Swellchain’s architecture integrates multiple layers and services for performance, scalability, and interoperability:

• Actively Validated Services (AVSs): These are modular protocols or service layers that validators can secure using restaked ETH. AVSs enable specialized functions, such as data availability proofs, cross-chain bridges, or application-specific computation.
• Transaction Finality & Scalability: By leveraging rollup technology and Proof of Restake, Swellchain optimizes block finality times and allows parallel processing of transactions. This reduces congestion and improves user experience.
• Cross-Rollup Interoperability: The network is designed to interact with multiple rollups and Layer‑2 networks, enabling seamless transfer of liquid staking tokens (swETH/rswETH) and other assets across chains.

This modular and interoperable design positions Swellchain as a scalable, efficient, and highly flexible Layer‑2 solution for Ethereum liquid staking and restaking.

Security Model

Swellchain’s security is grounded in Ethereum’s base-layer consensus and is enhanced through restaking:

1. Base Ethereum Security: ETH staked via Swellchain inherits the security of the Ethereum network. Even if the Layer‑2 network is under stress, the underlying ETH remains protected by the mainnet.
2. Validator Layer: Validators performing restaking functions maintain uptime and integrity, incentivized through rewards and penalties.
3. AVS Layer: Active service layers are continuously validated and monitored, providing additional safety guarantees while ensuring high performance.

This layered security model balances decentralization, resilience, and throughput, making restaking on Swellchain both robust and efficient.

Dual-Token, Dual-Purpose Economic Design

Swellchain leverages a dual-token system to separate network utility and economic incentives:

• swETH/rswETH: Represent staked ETH and restaked ETH. These tokens maintain liquidity while allowing holders to earn staking and restaking yields. They are transferable, tradable, and integrate with DeFi protocols.
• SWELL: Serves as the governance token and native gas token on Swellchain. Holders use SWELL to pay transaction fees, participate in the Swell DAO, and access protocol incentives.

This dual-token model ensures both economic alignment and functional separation — staking liquidity and yield via swETH/rswETH, and network governance and operational fuel via SWELL. It creates a sustainable, user-driven ecosystem that scales with adoption and activity.

Swellchain combines Ethereum-level security, restaking innovation, and modular design to deliver a high-performance Layer‑2 network. By integrating AVSs, supporting cross-rollup operations, and maintaining a dual-token economic model, Swellchain enables scalable staking, liquidity, governance, and DeFi interoperability — all while keeping the network secure, efficient, and community-driven.

How to Stake, Restake, and Use SWELL — Getting Started

A practical guide for getting started with Swell Network: from staking ETH to mint swETH, restaking for rswETH, using tokens in DeFi, and participating in governance with SWELL. Learn how to leverage Swell’s liquid staking ecosystem safely and effectively.

Staking ETH to Mint swETH

Swell Network allows users to stake any amount of ETH, removing the traditional 32 ETH minimum required for running a validator. When you deposit ETH into Swell, you receive swETH, an ERC‑20 liquid staking token that represents your staked ETH plus accrued staking rewards.

Steps to stake ETH:

1. Connect a compatible Web3 wallet (e.g., MetaMask) to the Swell interface.
2. Deposit the desired amount of ETH.
3. Receive swETH immediately, which begins accruing staking rewards automatically.

This approach gives users liquidity while earning staking yield, so your capital remains usable in other DeFi applications.

Restaking: Converting swETH to rswETH

For users looking to maximize returns, Swell offers restaking. Converting swETH to rswETH allows your staked ETH to participate in Proof of Restake operations, unlocking additional yield opportunities within Swellchain.

Benefits of restaking:

• Earn enhanced rewards on top of base staking yield.
• Enable your ETH to secure Actively Validated Services (AVSs), contributing to network functionality.
• Maintain liquidity via rswETH, which is still tradable and usable across protocols.

Restaking provides a yield-enhancing strategy while keeping your tokens liquid and integrated with the broader Swell ecosystem.

Using swETH and rswETH in DeFi

One of Swell’s key advantages is that liquid staking tokens remain interoperable with DeFi. Users can:

• Lend or borrow: Deposit swETH/rswETH on lending platforms to earn additional interest.
• Provide liquidity: Use tokens in liquidity pools to capture trading fees.
• Yield farming: Participate in farming strategies with staked assets.
• Collateralize: Use swETH/rswETH as collateral in supported protocols.

This flexibility allows users to compound rewards, earn extra yield, and maintain liquidity — all while their ETH continues earning staking or restaking rewards.

Using and Holding SWELL

The SWELL token is essential for governance and transaction fees on Swellchain:

• Governance participation: Hold SWELL to vote on proposals in the Swell DAO.
• Transaction fees: SWELL acts as the native gas token for L2 transactions on Swellchain.
• Ecosystem incentives: SWELL may also support staking-related rewards or protocol development programs.

By holding or trading SWELL, users actively contribute to the operation, growth, and governance of the network.

Monitoring Your Staking Activity

Swell provides tools and dashboards for users to track staking and restaking activity:

• View your ETH deposits, swETH/rswETH balances, and accrued rewards.
• Track protocol-wide statistics, including total staked ETH and network activity.
• Access explorers and analytics to monitor validator performance, AVS participation, and restaking yields.

Regular monitoring ensures you can optimize your staking strategy and stay informed about the Swell ecosystem’s growth.

Getting started with Swell is straightforward: stake ETH to mint swETH, optionally restake for rswETH, leverage tokens in DeFi, and participate in governance via SWELL. The platform combines liquid staking, restaking yield, and DeFi interoperability, empowering users to maximize rewards while maintaining full control over their assets.

Use Cases & Ecosystem – What You Can Do with swETH, rswETH & SWELL

The Swell Network ecosystem combines liquid staking, restaking, and governance in a Layer‑2 framework. swETH and rswETH provide liquidity and yield, while SWELL powers governance and network operations — together enabling diverse use cases and integration across DeFi and Layer‑2 protocols.

Liquid Staking with swETH and rswETH

At the core of Swell’s ecosystem are swETH and rswETH, two tokenized representations of staked ETH:

• swETH represents staked ETH plus base staking rewards.
• rswETH represents restaked ETH that also earns additional yield via Proof of Restake on Swellchain.

Both tokens are ERC‑20 liquid staking assets, meaning they can be traded, transferred, or used in other protocols without losing the underlying staking rewards. Users maintain liquidity while keeping their ETH earning rewards, overcoming the traditional lock-up constraints of staking on Ethereum.

DeFi Applications: Lending, Borrowing, Liquidity, and Yield

swETH and rswETH integrate seamlessly with DeFi protocols, expanding their utility beyond staking:

• Lending & Borrowing: Users can deposit swETH/rswETH to earn interest or borrow assets against their holdings.
• Liquidity Provision: Add swETH or rswETH to liquidity pools to capture trading fees and improve market efficiency.
• Yield Farming: Stake tokens in yield-generating protocols for additional returns, compounding staking or restaking rewards.
• Collateralization: Use swETH/rswETH as collateral for loans or derivative positions within compatible DeFi platforms.

These DeFi integrations allow users to maximize returns, maintain liquidity, and actively deploy capital while still benefiting from ETH staking yields.

Leveraging Swellchain Layer‑2 for Scalability

Swellchain, Swell’s Layer‑2 network, enhances utility and performance for swETH, rswETH, and SWELL:

• Faster Transactions: Swellchain reduces latency compared to Ethereum mainnet transactions, enabling near-instant staking, transfers, and DeFi interactions.
• Lower Costs: Gas fees are significantly reduced using SWELL as the native gas token.
• Cross-Chain Interactions: Restaked assets on Swellchain enable interoperability across multiple rollups and Layer‑2 networks, supporting cross-chain DeFi strategies.

This combination of liquidity, yield, governance, and Layer‑2 efficiency positions the Swell ecosystem as a comprehensive platform for ETH staking, restaking, and DeFi integration.

The Swell Network ecosystem unlocks multiple use cases: swETH and rswETH provide liquid, yield-bearing assets for staking and DeFi, while SWELL powers governance and transaction activity on Swellchain. Users can stake, restake, trade, lend, borrow, participate in governance, and leverage Layer‑2 scalability — all in a non-custodial, community-driven, and interoperable framework.

Swell Network is reshaping ETH staking by combining liquid staking, restaking, and a full restaking‑powered Layer‑2 ecosystem — all underpinned by the SWELL token. For ETH holders, it unlocks flexibility: stake what you want, stay liquid, and plug into DeFi or governance. For DeFi users and builders, it offers composability, scalability, and a community‑driven future. But like any cutting‑edge protocol, rewards come with risks. Do your due diligence: explore Swell’s docs, track swETH/rswETH markets, and understand smart‑contract exposures. If you’re curious, try staking a small amount, mint some swETH, and experience firsthand the “stake + liquidity + DeFi” model. The future of ETH staking might just be liquid — and ready when you are.

Ethereum staking has become one of the hottest trends in crypto, but traditional staking often locks your funds, limiting liquidity. That’s where Lido Staked Ether (stETH) changes the game! With stETH, you can stake your ETH through Lido and receive a liquid token in return—one that represents your staked balance plus rewards, all while staying usable across DeFi. Imagine earning staking rewards without sacrificing access to your ETH! According to Ethereum data, billions in ETH are already staked, and Lido holds a significant share of that market.