Welcome to the Swell Network Community Forum.
This forum will serve as a place for discussion relating to Swell Network. We encourage our community to share their ideas, provide feedback to the team and create discussion around the overall liquid staking ecosystem and swETH integrations.
After the Token Generation Event (TGE), the Swell forum will also serve as a place to solicit feedback via proposals and enable snapshot votes for decisions. Until the launch of $SWELL, governance is largely limited and the Swell DAO will remain solely responsible for executing all facets relating to the protocol.
What is Swell?
Swell is a non-custodial liquid staking protocol with a mission to deliver the world’s best liquid staking experience, simplify access to DeFi, while securing the future of Ethereum.
With Swell, users are able to earn passive income by staking ETH to earn blockchain rewards and in return be provided with a yield bearing liquid staking token (LST) to hold or participate in the wider DeFi ecosystem to earn additional yield.
2. What is liquid staking?
Liquid staking is a simple way to gain exposure to ETH staking without meeting the current 32 ETH requirement to run your own node.
Swell takes user deposits and stakes them on behalf of the user using our current node operator set. In return, users will receive swETH, Swell’s ERC-20 token that represents a users ETH staked on the beacon chain. swETH can be redeemed on the secondary market, or used on a number of DeFi platforms that Swell has integrated with.
Users will be able to redeem their swETH at a 1:1 value in early Q1 2024, when the protocol launches their next major upgrade, Barracuda, which will enable withdrawals directly from the Swell app.
3. How does Swell address the current concerns surrounding the liquid staking space?
The rise and prominence of large centralized entities leaves users with few alternatives to avoid the illiquid, custodial staking solutions they provide. These solutions also contribute to a highly centralized and concentrated staking environment that adds systemic risk to Ethereum.
Swell enables users to stake any nominal amount under 32 ETH, and in return for capital receive Swell’s liquid staking token, swETH, that represents their staked ETH and accrued staking rewards.
The reduction in the 32 ETH requirement dramatically increases the number and distribution of users that are able to participate in securing and decentralizing the Ethereum blockchain whilst also decreasing the current market share for larger staking providers.
4. What is ‘The Voyage’ and how can I participate?
The Voyage is Swell’s airdrop campaign where users can collect valuable pearls that will be redeemable for $SWELL at the token generation event (TGE).
The most efficient way to collect pearls is by minting swETH and either holding swETH, or LPing swETH in the eligible pools on Ethereum mainnet. LPing enables Voyagers to collect pearls at a higher rate than purely holding swETH.
Learn more here
5. What security measures are in place to protect user funds?
The following outlines Swell’s measures when it comes to security:
- Swell was audited by leading blockchain security auditor Sigma Prime prior to launching on mainnet and is committed to continuously audit its smart contracts
- The code is open-sourced and is covered by Immunefi’s bug bounty program
- Staking risk for stakers is minimized by Swell’s set of veteran node operators
- The protocol is non-custodial, minimizing counterparty risk
6. What utility does swETH have?
Swell has integrated with a range of protocols that enables users to utilize their swETH in DeFi.