Swell Network is Layer 2 built on the Polygon CDK toolkit allowing the protocol to operate in combination with both Liquid Staking and Restaking mechanisms. From here, users will receive swETH (Liquid Staking Token) or rswETH (Liquid Restaking Token) to use for many different profit-making activities. Join CoinViet to learn about Swell Network through the article below!
Swell Network is Layer 2 built on the Polygon CDK toolkit allowing the protocol to operate in combination with both Liquid Staking and Restaking mechanisms. With Swell Network, users can passively profit from staking and retaking ETH with the best DeFi experience. When users stake or retake ETH on Swell Network, they will receive swETH (Liquid Staking Token) or rswETH (Liquid Restaking Token). From here, users can use these two types of tokens for many different purposes such as borrowing, lending or providing liquidity on other DeFi platforms or on Swell Network itself to make profits.
Stakers are users who will stake ETH into the swETH contract and receive swETH of an equivalent value minted from that contract. From here, users can use swETH to provide liquidity on other DeFi platforms or deposit into the Swell Vault that will launch in the future to earn profits.
In addition, users can receive more profits when holding swETH longer through the exchange rate on the swETH contract. This rate tracks the relative value of the total ETH staked on Ethereum's consensus layer including rewards compared to the original ETH staked.
Exchange rate table of rewards when users hold swETH for a longer time
Exchange rate is calculated in part by the Chainlink Proof of Reserve oracle on the ETH balance on the consensus layer paid daily. This metric is then used to calculate the amount of swETH to mint when a user staking and the amount of ETH to return to the user when they unstake.
Node Operators will be individuals or organizations that will operate validators to maximize profits for Staker. After the Staker receives swETH, the ETH will be sent by the swETH contract to the Deposit manager contract and wait until 32 ETH is reached. After that, the Node Operator will send a Validator key to the Node Operator registry contract and continue to send it to the Deposit manager contract to get 32 ETH to put into the Ethereum contract. Validator will have to wait in line to be activated so the node operator can authenticate staking transactions on Ethereum's consensus layer.
Currently, Swell Network is supporting 2 groups of node operators:
Independent node operator: These are individual users who want to become node operators on the Swell Network to make profits. However, they need to pledge 16 ETH for each validator to act as a node operator.
Verified node operator: These are organizations and businesses that have previous experience as node operators. These node operators only need to pledge 1 ETH for each validator but must be verified and quality assured from Swell Network. Currently, there are 8 verified node operators operating on Swell Network including: Blockscape, DSRV, Hashquark, InfStones, Kiln, RockX, Stakely and SNC.xyz.
Currently, Swell Network is trying to integrate SSV technology, also known as DVT (Distributed Validator Technology) from ssv.network to reduce the amount of ETH required to become a node operator. Upon successful integration, both the Independent node operator and the Verified node operator only need to pledge 1 ETH for each validator. Additionally, Swell Network also charges a 10% fee on staker staking rewards of which 5% goes to node operators and the remaining 5% goes to DAO Treasury.
Rewards for stakers, node operators and DAO Treasury
Similar to Liquid Staking, users will bring ETH retake to Swell Network and receive rswETH (Liquid Restaking Token format co-developed with EigenLayer) of equivalent value. From here, users can use rswETH to provide liquidity on other DeFi platforms or Swell Network itself to earn profits.
In addition, Swell Network is building a Layer 2 solution called Swell L2 based on the Polygon CDK toolkit with Retaked Rollup model. The project said it will cooperate with AltLayer and EigenDA to build the processes required for Retaked Rollup. This ensures that users will receive optimal yield levels and minimized transaction costs compared to operations on the current Layer 1 mainnet.
Swell L2 for Restaking
With Swell L2, users can retake many types of assets such as LST, LRT, stablecoins,... to make profits. In addition, rswETH (the token used to pay fees on Swell L2) and swETH will be used in parallel in network management along with the project's SWELL token.
This is a feature that allows users to view swETH balance on Swell Network. In addition, this feature also displays the exchange rate between ETH/swETH and transaction history on the protocol.
Portfolio feature interface on Swell Network
This is where users can stake ETH to get swETH according to the exchange rate at that time. In addition, the interface also displays indicators such as swETH APR, transaction fees,...
Stake feature interface on Swell Network
This is where users can retake ETH to get rswETH according to the exchange rate at that time. In addition, the interface also displays indicators such as APR of rswETH, transaction fees,...
Retake feature interface on Swell Network
This is a comprehensive interface of DeFi platforms collaborating with Swell Network. Here, users can use swETH or rswETH to provide liquidity to partner projects directly on Swell Network.
Swell Network's Earn feature interface
This is an airdrop program organized by Swell Network to encourage users to participate in staking, restaking and then providing liquidity on other DeFi platforms. They will receive a reward of gems for using swETH or rswETH to provide liquidity and can exchange it for SWELL – the protocol's native token when it is released.
Swell Network's Voyage interface
As mentioned, Swell L2 is Layer 2 for Restaking of Swell Network and users can retake many types of assets such as LST, LRT, stablecoin, etc. Users will receive benefits after retaking assets at Swell L2 :
Get higher yield compared to other platforms.
Increase the percentage of receiving gems to receive SWELL token airdrop.
Receive tokens airdropped from projects built on Swell L2 in the future.
Receive points from other staking projects collaborating with Swell Network.
Swell L2 interface
From the beginning of 2024 to the time of writing (May 2024), Swell Network's TVL has increased from 306.6 million USD to more than 1.9 billion USD, or 6 times more. Part of the project launched a Restaking mechanism earlier this year with airdrop opportunities not only from Swell Network but also from other projects. On the other hand, Justin Sun - Founder of Tron deposited 120,000 eETH into Swell L2 and helped the platform's TVL increase greatly.
Swell Network's TVL increases 6x in 1H24
Specifically, the wallet owned by Justin Sun sent a total of 120,000 eETH (ether.fi Staked ETH) into the Swell L2 liquid restaking protocol on May 4 according to a search from Wu Blockchain. The value of assets that Founder Tron deposited into Swell L2 is up to 376 million USD and accounts for 46.6% of Layer 2's TVL.
Justin Sun deposited 120,000 eETH into Swell L2, accounting for 46% of the platform TVL. Photo: Blockworks
At the end of April, Justin Sun publicly announced his views on the two areas of liquid staking and restaking. At that time, he denied that anyone said he profited from these protocols and the Tron founder also emphasized that he only acted as an advisor to these projects. However, Justin's actions are the opposite when he deposited 480 million USD ETH into ether.fi and now 376 million USD into Swell Network.
Let's look forward to seeing with Coin68 whether Justin Sun will continue to deposit money into other liquid restaking platforms!
Swell Network has announced the launch of SWELL – the native token of the protocol used in the following cases:
Users who hold SWELL have voting rights to govern the protocol.
Used as an incentive for node operators who provide liquidity to the swETH/ETH pool on DeFi protocols and airdrop rewards.
However, Swell Network has not announced a specific release time for the SWELL token. Coin68 will update as soon as there is the latest information from the project.
The entry price for this order is very attractive as some analysts believe that ONDO's reasonable price is in the range of 0.4-0.7 USD. With a significant investment beyond the expected scope, Lookonchain suspected the whale had an insider.
Someone created a new wallet 27 hours ago and withdrew 1,870.68 $ETH ($5.7M) from #Gemini .
Then he spent the 1,870 $ETH ($5.7M) to buy 6M $ONDO at an average price of $0.95 in the past 27 hours.
Does this guy know something that we don't? https://t.co/3ZQ6s6SnVM pic.twitter.com/G1udIF8Mhw
— Lookonchain (@lookonchain) May 17, 2024
This transaction attracted the attention of the crypto community and ONDO, the native token of Ondo Finance, skyrocketed 11% immediately after the purchase.
However, ONDO has dropped after the latest bounce and is trading below the $1 threshold at the time of writing. However, ONDO is still increasing by more than 19% over the past week.
Crypto analyst Mags commented on the price movement, sharing analysis on the next price target for ONDO.
“If the price closes above 1 USD, the next target will be 1.4 USD and 2.7 USD or more.”
$ONDO keeps printing up +131%
$1.5 Incoming, Binance listing soon 👀 https://t.co/bF8lznNDOP pic.twitter.com/5v95S4aZvn
— Mags (@thescalpingpro) March 25, 2024
A whale created a new wallet on May 16 and withdrew 1,870.68 ETH (worth $5.7 million) from the Gemini cryptocurrency exchange to buy 6 million ONDO tokens at an average price of 0, 95 USD.
The entry price for this order is very attractive as some analysts believe that ONDO's reasonable price is in the range of 0.4-0.7 USD. With a significant investment beyond the expected scope, Lookonchain suspected the whale had an insider.
Someone created a new wallet 27 hours ago and withdrew 1,870.68 $ETH ($5.7M) from #Gemini .
Then he spent the 1,870 $ETH ($5.7M) to buy 6M $ONDO at an average price of $0.95 in the past 27 hours.
Does this guy know something that we don't? https://t.co/3ZQ6s6SnVM pic.twitter.com/G1udIF8Mhw
— Lookonchain (@lookonchain) May 17, 2024
This transaction attracted the attention of the crypto community and ONDO, the native token of Ondo Finance, skyrocketed 11% immediately after the purchase.
However, ONDO has dropped after the latest bounce and is trading below the $1 threshold at the time of writing. However, ONDO is still increasing by more than 19% over the past week.
Crypto analyst Mags commented on the price movement, sharing analysis on the next price target for ONDO.
“If the price closes above 1 USD, the next target will be 1.4 USD and 2.7 USD or more.”
$ONDO keeps printing up +131%
$1.5 Incoming, Binance listing soon 👀 https://t.co/bF8lznNDOP pic.twitter.com/5v95S4aZvn
— Mags (@thescalpingpro) March 25, 2024
Fantom (FTM), a once famous layer-1 blockchain, is receiving attention again ahead of an important upgrade called Sonic.
On the evening of May 17, the Fantom Foundation posted an important governance proposal, announcing to the community a new project called Sonic Network (S). Sonic Network is a new layer-1 blockchain developed by Fantom on the new Sonic technology platform, replacing Fantom's old Opera version.
https://x.com/FantomFDN/status/1791517798205907116
Once the Sonic Network is deployed, FTM holders will be able to redeem tokens 1:1 for the Sonic network currency called S. Those who do not want to redeem can still continue to hold FTM. However, the Fantom Foundation encourages users to migrate to the new network as all the attention and development effort of the project will be transferred here.
The rest of the proposal retains the changes that were mentioned in the Sonic upgrade announcement at the beginning of the year.
Both Fantom's FTM and TVL token prices have increased more than 30% in the last 7 days, the clearest signal that money is being poured back into the project.
Specifically, while the FTM price increased from 0.64 USD to 0.84 USD, the value locked (TVL) of Fantom increased to 200 million USD on May 16, before decreasing to 129 million USD at the time of writing. This is the highest TVL level that Fantom has achieved since July 2023, when the Multichain hack occurred, causing heavy damage to the ecosystem.
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