Liquid Staking Protocol Swell Sees TVL Double to $245 Million
Liquid staking protocol Swell has experienced a significant increase in its total value locked (TVL) this month, reaching 108,000 ether worth about $245 million. Since the beginning of December, Swell has received nearly $125 million in ETH deposits, making it the fourth-largest liquid staking protocol.
This surge in inflows coincides with Swell’s announcement of “Pearl” rewards for users who mint its liquid staking token, swETH, and restake it on the EigenLayer platform. The reward program has seen substantial activity, with over 53,000 swETH minted, valued at more than $120 million.
EigenLayer allows users to deposit and re-stake ether from various liquid staking tokens to secure third-party networks. It recently added support for six additional tokens, including Swell’s swETH. Among these new additions, Swell has seen significant asset inflows.
Centralization Concerns
Despite concerns about centralization within the Ethereum ecosystem, Swell’s surge in TVL demonstrates the growing popularity of liquid staking. This approach simplifies the staking process and allows users to maintain control over their capital.
Swell users who stake their ETH receive a yield-bearing liquid staking token that holds value and provides flexibility within the broader DeFi ecosystem.
Hot Take: Liquid Staking Gains Momentum as Swell Doubles TVL
Liquid staking is gaining momentum within the Ethereum ecosystem as protocols like Swell continue to attract users and increase their total value locked (TVL). With its TVL doubling this month to $245 million, Swell has become one of the top liquid staking protocols.
The surge in Swell’s TVL can be attributed to the introduction of “Pearl” rewards, which incentivize users to mint and restake its liquid staking token, swETH. Additionally, the integration of Swell’s swETH token into the EigenLayer platform has further contributed to its asset inflows.
Despite concerns about centralization, liquid staking offers a simplified approach to staking and allows users to maintain control over their capital. Swell’s success highlights the demand for this type of protocol within the Ethereum community.
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