If we review all the advancements achieved in Ethereum to date and the pace at which innovations emerge in the world of decentralized finance, you'll see that innovation knows no bounds. Today, we bring you one of the latest trends that has arrived to stay in Ethereum, liquid restaking, a concept that is changing the way we interact with our staked ETH!
What is Liquid Restaking?
Before diving into the details of Swell Network and its liquid restaking token rswETH, it's important to understand what liquid restaking is and how it differs from traditional liquid staking.
In traditional liquid staking, delegated assets are transformed into tokens that can be used in other DeFi protocols while you continue to receive rewards for helping secure the network through staking. This provides users with greater flexibility and the ability to maximize their earnings on multiple fronts.
However, liquid restaking takes this flexibility to another level. In liquid restaking, delegated assets not only become tokens that can be used in other DeFi protocols, but they also continue to generate staking rewards. This means that users can benefit from both the earnings generated by their original delegation and additional investment opportunities in DeFi, all at the same time.
In summary, while traditional liquid staking offers flexibility by allowing delegated assets to be used in other DeFi protocols, liquid restaking goes a step further, allowing these assets to generate additional rewards while actively participating in the DeFi ecosystem.
Swell Network joins the Liquid Restaking Movement
One of the leading projects in the world of liquid restaking is Swell Network. This project has been at the forefront of innovation in Ethereum, and its involvement in the DeFi ecosystem is remarkable.
Swell Network was one of the pioneers in joining the liquid restaking movement, and its participation in EigenLayer marked a milestone in this revolution. EigenLayer is a platform that allows users to take advantage of the benefits of restaking by depositing their liquid staking tokens (LST) obtained by staking ETH on protocols like Swell Network. This not only provides users with the flexibility of having a liquid token that can be used in DeFi but also allows them to benefit from restaking and maximize rewards for their participation in the Ethereum network.
Restake swETH on EigenLayer
Furthermore, the tokens deposited in EigenLayer serve an important purpose: to help secure the Actively Validated Services (AVS) on the platform. These services include oracles, bridges, sidechains, virtual machines, and other systems that require distributed validation to ensure decentralized security efficiently and effectively.
It is in this context that rswETH, the liquid restaking token of Swell Network, was born.
rswETH: Swell's Liquid Restaking Token
As a new development in Swell Network, they have announced the upcoming launch of their native liquid restaking token, rswETH. This liquid restaking token (LRT) represents a new frontier in the world of liquid restaking and allows users to unlock liquidity for their LST.
Unlike LST deposited in EigenLayer, which remains locked, rswETH is liquid and can be used in other DeFi protocols. Undoubtedly, an attractive way to participate in the DeFi ecosystem without compromising your rewards.
Stakely's role in the Liquid Restaking Council
Swell Network is not only an innovative project but also committed to security and decentralization. They recently announced the Liquid Restaking Council, an independent council aimed at involving the community in decision-making and governance of rswETH.
At Stakely, we're proud that they chose us to be part of this council and contribute to the evolution of liquid restaking in Ethereum. As part of our mission, we will provide users with the tools and information necessary to make the most of these innovations and provide a safer and more efficient DeFi experience.
The world of liquid restaking is constantly evolving, and Swell Network, along with its rswETH token, is at the forefront on Ethereum. With the ability to unlock liquidity while still earning rewards, rswETH represents an exciting solution for DeFi enthusiasts.
Follow us to stay up to date with the latest developments from Swell Network and rswETH, and join the liquid restaking revolution on Ethereum!