Introducing Swell Network

Introducing Swell Network

Welcome to Staking 2.0 by Swell Network

Swell Network at a glance. (Click to zoom in.)

TL;DR

  • Swell Network is a permissionless, non-custodial, and liquid ETH staking protocol.
  • The protocol is backed by crypto’s leading funds, firms, and angels including Framework Ventures, Apollo Capital, IOSG Ventures, Maven 11, Mark Cuban, Kain Warwick, and more.
  • As a pioneer of next-gen ETH staking (Staking 2.0) Swell Network offers a superior staking experience for stakers through Swell Financial NFTs (swNFTs) and Swell Vaults — enabling higher returns all in one place.
  • For node operators, Swell is fully permissionless.
  • The protocol has been comprehensively audited by multiple cybersecurity firms.
  • Swell is due to launch in the coming weeks with its Token Generation Event (TGE) scheduled in the near term.

Overview

Welcome to the Next Generation of ETH Staking

We are pleased to introduce to the world: Swell Network.

Swell is a permissionless, non-custodial, and liquid ETH staking protocol that is built for stakers, node operators, and the Ethereum ecosystem.

We are scheduled for launch in the coming weeks.

Swell Network is pioneering Staking 2.0.

Backed by the Industry’s Best

Swell is backed by industry’s best, including leading crypto and DeFi venture capital funds, firms, and angels. As a community, we are shaping a new paradigm for ETH staking that is built on the principles of blockchain. Swell investors include:

  • Framework Ventures
  • Apollo Capital
  • IOSG Ventures
  • Maven 11
  • Mark Cuban
  • Ryan Sean Adams / David Hoffman (Bankless)
  • Kain Warwick / Jordan Momtazi (Synthetix)
  • Fernando Martinelli (Balancer)

… and many more.

Swell Network is backed by DeFi’s leading venture capital funds and angels.

Problem

PoS Design and Staker Preferences

It could be said that Ethereum’s PoS design for ETH to be staked and importantly — locked — runs contrary to the private / rational preferences of the stakers themselves.

More specifically, if given the option, it is not unreasonable to assume that stakers would prefer to: (1) stake their ETH in a manner which delegates validator responsibility in a non-custodial and diversified manner, (2) unlock their staked ETH to earn additional risk-adjusted return across DeFi and (3) have the flexibility and peace of mind to be able their withdraw their staked ETH as they pleased.

Put simply, PoS wants illiquid collateral (locked stake) and DeFi wants liquid collateral (unlocked stake).

These dynamics are intensified against a DeFi ecosystem that is largely characterized by rapid financial and technological innovation, near infinite crypto-composability, and superfluid collateral rehypothecation of that which can be tokenized including ‘stake’ itself.

On top of this, protocol-enabled withdrawals of ETH that are staked to the Beacon Chain are not yet available, until some time after the Merge, providing further incentive to come up with work-arounds to liquefy otherwise locked stake / collateral.

As a result, it is no wonder that liquid ETH staking has continued to grow.

The Current Solution Space

With the Beacon Chain already live since December 2020, several solutions have come to the fore aiming to meet this demand from stakers. These range from centralized to decentralized offerings, custodial and non-custodial approaches, permissioned versus permissionless design, and more.

A deeper survey of the existing solution space strongly suggests that more innovation and, importantly, choice, is needed for something as critical as ETH staking.

As we know, beyond simply providing staking rewards and simplifying the staking experience, staking solutions ultimately play an influential role in the underlying security and decentralization of Ethereum itself.

The importance of this role is underscored further given that it appears that much like MEV, liquid staking seems to be an inevitable and emergent property of Ethereum.

Balancing Private and Public Wants

A key question therefore is how we should best meet the balance of wants between one hand, the private benefit to the staker and node operator, and the other, the public good of Ethereum itself.

Whatever the answer may be, it appears that prevailing conditions including the ever-present risk of centralization / collusion, now necessitate delivery of a truly permissionless, non-custodial, and liquid ETH staking protocol

Enter Swell Network.

Solution

A New Class: Staking 2.0

Swell represents a new breed of ETH staking.

By incorporating best practice from DeFi 1.0 and leaning into the innovation from DeFi 2.0, we are heralding a new and improved era of ETH staking: Staking 2.0. This means higher yields, better user experience, and full atomic transaction-level transparency.

As a multi-sided platform, the Swell Network protocol exists to service multiple actors within the Ethereum ecosystem and beyond. The primary focus vision centers around: stakers, node operators, and the ecosystem at large.

Swell Network aims to deliver best-in-class staking experiences for stakers and node operators, whilst supporting the core tenets of the Ethereum ecosystem.

For Stakers

  • Swell will offer users higher yields, a better user experience, and more transparency. Through Swell NFTs (swNFTs) which are a financial NFT which contain your Swell ETH (swETH) coupled with the power of Swell Vaults, you will be able to compound your yield across DeFi all in one place.
  • This creates an economically more attractive and user-friendly experience. On top of this, Swell’s smart contract design is built with the intention for full and unbridled transparency.
  • Swell is the first protocol to utilize atomic transactions to enable users to be the direct depositor in ETH deposit contracts. (As a result, there is technically no deposit pool with Swell — everything is completed in one self-contained transaction.) From an architectural standpoint, this means stakers are able to directly track and see where their ETH deposit goes, which is fully live and on-chain. This is also one of the pillars for Swell being fully non-custodial meaning that stakers have full control over their keys and their ETH.

For Node Operators

  • Swell is fully permissionless by design. The protocol will feature relevant best practice incentive / disincentive mechanics coupled with comprehensive risk mitigations to ensure health, alignment, and value creation for each and every user of the protocol.
  • As a fully trustless platform, Swell will provide node operators with the ability to easily stake and run nodes less than the 32 ETH requirement. Initially, the requirement will be 16 ETH. In addition we are aiming to be the first permissionless staking protocol to integrate into Distributed Validator Technology (DVT) which would help pave the way to reduce node operator requirements from 16 ETH to as little as 1 ETH. (This has already been demonstrated in Swell’s Proof of Concept which has been operating on the Beacon Chain since its inception back in Dec 2020).
  • On top of this, functioning at the protocol layer, Swell will serve as an enabling back-end infrastructure for node operators to leverage Swell. This will be made in a fully white-labeled manner, with Swell operating behind-the-scenes and beneath-the-ground as an infrastructure layer simultaneously safeguarding Ethereum whilst delivering powerful technology for node operators.

For the Ecosystem

  • Swell aims to contribute to the ongoing decentralization of security of Ethereum by providing a differentiated approach for ETH holders around the world.
  • Among other things, this includes responsible and conscious treatment of MEV, governed by principles of enabling MEV transparency and fairly / democratically distributing MEV to users.

Progress

Swell has been operating in stealth for some time and the time is now to finally pull the curtain and share with the world what we’ve been up to. Here are some key highlights:

  • Seed Round Closed: Swell is now fully capitalized to deliver the next generation of ETH staking with funds to go toward product development, security, growth, resourcing, and more. We’ve been fortunate to have partnered with some of the leading minds in crypto and DeFi through the seed round.
  • Swell v2 Smart Contracts Development Completed: The Swell v2 Smart Contracts have been completed to enable non-custodial and liquid staking.
  • Multiple Security Audits Completed: We have completed several audits of Swell v2 smart contracts with multiple firms including: CertiK, Chainsulting, and Peckshield. With reports soon to be finalized, these will be shared with the public in line with our core ethos for transparency and openness.
  • More Audits Booked: We have booked several more audits throughout the year with leading cybersecurity firms to ensure ongoing assurance of the protocol. Security remains the highest virtue of our staking solution.
  • Design / UI Completed: Swell Design / UI is now completed, bringing the best of consumer web application experience with the familiarity of simple and effective DApp UX.
  • DApp Development Underway: The team is making strong progress on pushing the envelope for the Swell DApp. Swell is seeking to deliver a fully responsive, beautiful, and sleek experience for stakers and node operators.
  • Beta Testing To Open Soon: Swell Beta Testing is locked in for later this month. Invitations for Beta Testing will open soon.
  • Guarded Launch Planning: Swell has secured several private commitments for ETH to be staked on the protocol. A guarded launch is scheduled for early next month.
Swell Network is the first to pioneer the use of atomic transaction staking to enable a fully non-custodial design. This is one of many first to market innovations on the cards.
Swell is due to launch soon providing stakers with a superior staking offering to earn staking rewards and DeFi yield all in one place using swETH and swNFTs.

Immediate Plans

Swell’s immediate plans. Our Strategic Roadmap will be shared soon.

There is plenty in-store for 2022 and beyond. We will be soon sharing our Strategic Roadmap in due course. In the interim though, our immediate plans are:

  • Launch Before the Merge: With the Merge just around the corner, Swell is planning to launch in the coming weeks in a staged and structured manner — commencing first with a guarded launch.
  • Generate Tokens as a Coordination Mechanism: Swell is planning its Token Generation Event (TGE) in line with a future Genesis Supply Creation Date. This will help function as a coordination mechanism to ensure Swell delivers in accordance with its vision.
  • Distribute to the Community: Swell will be completing a public sale very soon and will distribute governance to the community.

Getting Involved

Swell Network is a Decentralized Autonomous Organization (DAO). We are always open and happy for folks to get involved and help us shape the future of ETH staking. More information will be coming soon on how you can help the protocol.

  • Join the DAO: Swell Network DAO governs the protocol’s permissionless, non-custodial, and liquid ETH staking protocol. Everyone is welcome to join our open and inclusive community to participate in governance, suggest improvements, and offer ideas / feedback.
  • Become a Core Contributor: We are also presently on the lookout for best-in-class DeFi folks for our Core Contributor team. Roles are open across development, growth, marketing, and more. Please visit our website for more information on open and active roles.
  • Stay Up To Date: To stay up to date, please consider joining our Discord, following our Twitter, and visiting our Website to learn more.

Quick Links