Swell Network, an emerging DeFi project with a mission to “improve” the parent chain Ethereum, has been rising extremely strongly in the past few months.
Let’s find out more with CryptoChill.news!
What is Swell Network?
Swell is a liquid staking protocol that simplifies access to DeFi while securing the future of Ethereum.
With Swell, users can earn passive income by staking ETH to earn rewards, and in return, they are provided with a Liquid Staking Token (LST).
Distinctive features of Swell Network
The Swell Network was created to build a protocol that makes staking easier without lock-in.
Swell provides users with an uncustodial means of liquidity staking through a transferable ERC-20 token called swETH. The protocol aims to provide users with:
- High yields with low costs: the platform allows users to stake ETH or withdraw SWETH, then send it to Swell vaults. Besides, the average ETH staking APY is around 4%, which leaves not much room for service providers to collect fees. Swell offers no staking fees, making it the lowest-cost staking option on the market.
- SWETH is an LST token, acting as a token representing the amount of ETH users stake inside Swell.
- 100% linked to Ethereum: the project aims for a permissionless framework that will be enabled by mechanisms such as DVT, among others.
- Decentralized: Swell emphasizes independence; the project’s tool allows users to store assets in their own wallets to avoid risks of loss. There are too many projects that sacrifice security for expansion. Being fully linked to Ethereum has laid the foundation for an ultra-secure protocol.
How does the project’s product work?
Node
A group of professional node operators is selected to provide scalability and high performance to users in a competitive environment.
Subsequent loops will expand the system, ensuring liquidity and stability with risk mitigation technologies such as DVT, which are compatible with the values of the protocol.
Stake
When users stake their ETH into the Swell swETH contract, the equivalent of ETH in the form of swETH will be minted for the user. The ETH in the SWETH contract is sent to the deposit manager’s contract to be pooled until it is sufficient for a deposit of at least 32 ETH.
Since the minimum value required to participate in Ethereum staking is 32 ETH for transactions, pooling in the Swell Network significantly minimizes users’ costs before sending to the main chain.
What does Swell have that attracts users?
Swell voyage
The protocol is managed and operated by Swell DAO contributors. DAOs are responsible for a variety of functions, such as operating or deciding the development of a project. At the same time, this DAO mechanism is also a criterion for considering airdrops for users.
Specifically, the platform spends at least 5% of the total SWELL supply (worth about $50 million) on the Swell Voyage Airdrop program. This campaign gives users a great opportunity to get rewards and increases their chances of getting an Airdrop. Through operating in the protocol, users can earn Pearl,” and after TGE, they can swap back to $SWELL and trade as usual.
The increase in TVL is due to the fact that the community is actively participating in contributing to the project experience, thereby increasing the possibility of Airdrop hunting.
swETH
Swell Network is a project whose mission is to simplify users participation in staking activities on the Ethereum blockchain.
The SWETH token is present on many large DEXs, such as Curve, 1inch, or the emerging LSDfi project Pendle Finance. In particular, on Pendle, the swETH-bbaWETH pair is currently the largest trading pair on Aura Finance.
Users can earn Pearls through the following activities:
- Stake $swETH.
- LP Farming at partner pools such as Aura, Curve, and 1inch
- Get a role in Discord.
- Receive rewards when reaching specific targets set by the community.
Instead of holding and staking SWETH, farming will help users get more profits.
The project encourages users to stake at least 1 ETH to receive 1 swETH corresponding to accessing the Discord SwellNetworkDAO while optimizing the amount of pearls received (1 swETH = 20 Pearls) to help redeem rewards later.
Preferential rewards of Swell Network
Currently, the project is running a program that incentives users to deposit ETH on the platform with zero fees. This means that stakers receive 0% rewards from this activity, thereby making the platform a major competitor to other LSDs.
Ecosystem of Swell Network
Swell Network’s HST includes major DEX aggregators in the market, including 1inch, Uniswap, Maverick Protocol, Bunni, Balancer, and Aura.
Judge
As I mentioned above, Swell Network is a project whose mission is to simplify entering the Ethereum blockchain.
The fact that the SWETH token is present on many large DEXs such as Curve, 1inch, or the emerging LSDfi project Pendle Finance is proof that the value that the project brings is very high.
The number of swETHs used in the protocols has increased from 0 to 12 million since their launch. Under the lure of the Voyage Airdrop, ploughmen are slowly turning their attention to Swell.
Besides, according to data from Swell’s official Twitter channel, the number of ETH stakes in the past month on the project has risen to 9th only after top names such as Lido, Rocket Pool, and even Frax Finance.
Contact
Website: https://www.swellnetwork.io/
Twitter: https://twitter.com/swellnetworkio
Docs: http://docs.swellnetwork.io/
Summing up
Through the above article, CryptoChill has helped you know about Swell Network and the highlights of the project.
Disclaimer: This post is not investment advice. You will be 100% responsible for your investment decisions.
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