What is Swell Network (SWELL)?
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🟢 The simple version
Plain English — no jargon. Start here.
Swell Network is a liquid staking and restaking protocol that has expanded into its own Layer 2 blockchain — deposit ETH for swETH (liquid staking) or rswETH (liquid restaking via EigenLayer), and bridge those assets to the Swell L2 where they can be used across Swell's growing DeFi ecosystem.
Swell's three-layer product
Swell started as a straightforward liquid staking protocol competing with Lido and Rocket Pool. You deposit ETH, receive swETH, earn Ethereum staking rewards, keep your ETH liquid for DeFi. It then added restaking — rswETH earns both ETH staking and EigenLayer restaking rewards on top. The most ambitious move: Swell launched its own Layer 2 blockchain (Swell L2), built on Optimism's OP Stack. The Swell L2 is designed with restaking yield baked in — bridging rswETH or swETH to the L2 earns restaking yield natively within the chain's economy.
This vertical integration — from staking to restaking to a purpose-built L2 — is Swell's attempt to create a captive ecosystem rather than just competing on yield with dozens of other LST and LRT protocols.
SWELL token
SWELL is the governance token of Swell Network. It launched in 2024 via an airdrop to swETH/rswETH depositors and Swell L2 users. SWELL governs protocol parameters across Swell's full product stack — staking, restaking, and L2 settings. Total supply: 10 billion SWELL.
Is SWELL legal in India?
Yes. SWELL qualifies as a Virtual Digital Asset (VDA) under Indian law. 30% tax on gains and 1% TDS applies. Always consult a tax professional for your specific situation.
🟡 A bit more detail
For when you want to go a little deeper.
swETH vs rswETH — which to use
swETH: standard liquid staking token, ETH staking rewards only, lower risk profile, more widely integrated as DeFi collateral. rswETH: liquid restaking token, ETH staking + EigenLayer AVS rewards, higher expected yield, additional slashing risk. Both are liquid — tradeable on DEXes without unstaking. If you want simple ETH yield with maximum DeFi compatibility, swETH. If you want to layer EigenLayer rewards on top and accept the extra risk, rswETH.
The Swell L2 — rationale
By building its own L2, Swell can create an environment where swETH and rswETH are the native collateral assets — every DeFi protocol on the Swell L2 is designed around restaked ETH. The L2 uses restaking yield as a deflationary mechanism for gas fees. This is an ambitious design but adds significant complexity — users who bridge to the Swell L2 take on OP Stack bridge risk, Swell L2 sequencer risk, and the underlying restaking risks simultaneously.
Swell is simultaneously competing in three difficult categories: LSTs (dominated by Lido), LRTs (crowded with ether.fi, Renzo, Puffer, Kelp), and L2s (extremely competitive). Being present everywhere is not the same as winning anywhere. Monitor actual TVL and L2 transaction volume for signs of genuine adoption. Live data: CoinGecko
🟣 The full technical picture
For the technically curious.
Key facts
- Token: SWELL (governance, 10 billion supply)
- LST: swETH (Ethereum staking rewards)
- LRT: rswETH (ETH staking + EigenLayer restaking rewards)
- L2: Swell L2 (OP Stack, restaking-native)
- Chain: Ethereum (staking/restaking) + Swell L2
- L2 stack: Optimism OP Stack
- Restaking layer: EigenLayer
- SWELL launch: 2024 (airdrop to depositors)
- Backing: Framework Ventures, IOSG Ventures; raised ~$7.5M seed
- Competitors: LST: Lido, Rocket Pool. LRT: ether.fi, Renzo. L2: Base, Arbitrum.
OP Stack L2 with restaking yield
The Swell L2 uses swETH and rswETH as its canonical bridge assets — when you bridge ETH to the Swell L2, it is converted to swETH. The L2's gas token economics use restaking yield flows to partially subsidise transaction fees, creating a lower-fee environment. The sequencer revenue and EigenLayer yield flows are governed by SWELL holders. This design makes the L2 economically dependent on EigenLayer restaking rewards continuing to flow — a dependency worth noting.