Swell Network is a permissionless, non-custodial, and liquid Ethereum (ETH) staking protocol that aims to optimize yield in the decentralized finance (DeFi) ecosystem. With its innovative approach to liquid staking, Swell offers users the opportunity to earn staking rewards while maintaining the flexibility to access their staked ETH. In the past 30 days, Swell has experienced a remarkable increase of 58.10% in its staked percentage, highlighting its growing popularity and effectiveness. In this blog, we will delve into what makes Swell unique, explore its recent growth, and examine the driving factors behind its success. Swell has a community-driven governance model, which means that the Swell community shapes the future of the protocol by voting on key decisions. It also takes a security-first approach, ensuring continuous auditing for continuous development and offering bounties for bugs detected. It is backed by several reputable investors, such as Framework, 105G Ventures, Apollo Crypto, Maven 11, BIXIN Ventures, and a number of angel investors including Mark Cuban and Kain Warwick1.
Swell raised $3.75 million in a seed round co-led by Framework, IOSG Ventures, and Apollo Capital. Its unique selling point is its promise to lower the barrier to entry for Ethereum staking, with a minimum commitment of only 1 ETH, and providing liquidity to stakers by granting them an interest-bearing token representing their stake. Swell’s staking process also allows users to earn additional interest through in-app “vaults”.
Overview of Swell Network
Swell Network simplifies the process of staking ETH and earning rewards in DeFi. As a non-custodial staking protocol, it enables users to stake their ETH and receive swETH, an interest-bearing token representing their stake. This allows stakers to retain liquidity and participate in other DeFi opportunities while still earning staking rewards. Swell’s user-friendly interface and intuitive steps make it easy for anyone to participate in the staking process:
- Stake: Users can connect their wallets and stake their ETH directly through the Swell platform.
- Earn: Once staked, users receive swETH in their wallets, which starts earning rewards immediately.
- Deposit: Swell users can maximize their returns by depositing their swETH into yield-optimized vaults (coming soon).
- Community Participation and Governance: Swell Network values community participation and decentralization. The Swell DAO (Decentralized Autonomous Organization) allows community members to actively shape the future of the protocol by voting on key decisions. By joining the DAO, users can contribute to the development and governance of the Swell ecosystem, ensuring a collaborative and inclusive approach to decision-making.
Strategic Partnership with InfStones
To enhance the flexibility, transparency, and yield of its liquid staking solution, Swell recently entered into a strategic partnership with InfStones, a renowned blockchain infrastructure provider. This collaboration enables Swell to offer users even greater benefits and choices when staking their ETH. Notably, Swell became the first protocol to allow stakers to select their preferred node operator, and through this partnership, users can natively choose InfStones as a verified node operator. The collaboration with InfStones strengthens Swell’s mission to provide a direct and decentralized approach to staking Ethereum, aligning with the core principles of the Ethereum network.
The Voyage: A Pathway to Swell Citizenship
The Voyage is a unique program introduced by Swell Network that has played a significant role in driving the adoption of the platform. This program offers users the opportunity to become citizens of the Swell DAO and actively participate in the Swell community. By embarking on The Voyage, users can earn “pearls” that represent their contribution and involvement within the Swell ecosystem.
The Voyage serves as an engaging and rewarding journey for users, fostering a sense of belonging and empowerment. It incentivizes users to take an active role in shaping the future of Swell by participating in various activities and contributing to the community’s growth. The program not only encourages community engagement but also facilitates the adoption of the Swell platform in several ways:
- Rewards and Incentives: The Voyage provides users with rewards in the form of pearls, which can be earned by completing specific tasks or achieving milestones. These rewards incentivize users to actively participate in the Swell community and explore the features and benefits of the platform.
- Community Building: The Voyage serves as a platform for users to connect with like-minded individuals who share a common interest in Ethereum staking and DeFi. By fostering a strong community, Swell enhances user engagement and builds a supportive environment that encourages adoption.
- Education and Awareness: Through The Voyage, Swell educates users about the platform’s features, benefits, and the broader concepts of staking and yield optimization in DeFi. This educational component helps users understand the value proposition of Swell and increases awareness of the platform within the cryptocurrency community.
- User Feedback and Iteration: The Voyage provides an avenue for users to provide feedback, suggestions, and ideas for the further development and improvement of the Swell platform. This direct line of communication between users and the Swell team enables iterative enhancements and ensures that the platform aligns with the needs and preferences of its users.
By implementing The Voyage program, Swell has successfully created an ecosystem where users are actively engaged, rewarded, and empowered. The program has contributed to the adoption of the Swell platform by fostering a strong community, educating users, and incorporating user feedback into the platform’s development. Through The Voyage, Swell has established itself as not just a staking protocol but also as a vibrant and inclusive community-driven platform for Ethereum staking and yield optimization.
Audits, Security, and Bug Bounties
Swell Network prioritizes security and continuous development. The protocol undergoes regular audits by reputable third-party firms to ensure the safety and integrity of its smart contracts. Bug bounties are also offered, incentivizing security researchers to identify and report vulnerabilities. Swell partners with leading bug bounty platforms to maintain a robust security posture and promptly address any potential threats or weaknesses.
Expansion to Other Blockchains
While Swell Network has already made significant strides within the Ethereum ecosystem, the protocol has ambitious plans for expansion. Swell aims to launch on additional blockchains, starting with Avalanche and Polygon, in its pursuit of providing its liquid staking solution to a wider audience. This expansion
Swell Network is revolutionizing Ethereum staking and yield optimization. With its liquid staking protocol, users can stake ETH and earn rewards while maintaining liquidity. The recent 58.10% increase in Swell’s staked percentage demonstrates its growing popularity. Swell’s unique features, including in-app “vaults” for DeFi farming, set it apart. The partnership with InfStones enhances flexibility and transparency, allowing users to choose preferred node operators. The Swell DAO ensures community participation and governance. Security is a top priority, with regular audits and bug bounties. Swell’s expansion to other blockchains, starting with Avalanche and Polygon, will widen its reach. Swell Network offers a user-friendly, secure, and rewarding experience for ETH stakers, paving the way for a new era of liquid staking and yield optimization in the DeFi ecosystem.