The First: Ethereum Re-Staking Race Star Swell Network

In recent years, with the transition of Ethereum to the PoS (Proof of Stake) mechanism, the staking track has gradually become a popular track in the blockchain field. Users participate in network consensus and receive rewards by staking ETH, but the liquidity problem of traditional staking always exists: the staked ETH is locked and cannot be used for other DeFi activities, resulting in a loss of capital efficiency.
To solve this problem, liquidity staking protocols have emerged, such as Lido, Rocket Pool, etc., providing liquidity derivatives that allow users to not only obtain staking returns, but also participate in the DeFi ecosystem. However, with the intensification of competition in the market, pure liquidity derivatives can no longer fully meet users' needs for decentralization, flexibility, and profit optimization, and the re-staking market has emerged.
Swell Network stands out with its innovative decentralized mobile staking mechanism. As an emerging mobile staking protocol, Swell Network provides unique swETH and swNFT products, enhancing user autonomy and transparency. Recently, Swell Network announced the upcoming launch of its governance token SWELL , and on December 3rd at 16:00 (UTC + 8), the digital encryption trading platform The First was launched. This is an important milestone for its ecosystem, marking Swell's entry into a new stage of protocol governance and community building.
What is Swelling Network?
Swell Network is a decentralized and non-custodial Ethereum liquidity staking protocol, dedicated to providing users with convenient staking and re-staking services, while ensuring the security and decentralization of the Ethereum network. Unlike traditional staking methods, Swell allows users to stake ETH without locking up funds, and obtain liquidity tokens swETH and rswETH, further participating in other DeFi protocols to achieve higher ROI. Through innovative mechanisms, the platform not only allows users to enjoy staking returns, but also re-staking on platforms such as EigenLayer to obtain additional returns, greatly improving capital utilization.
As the first protocol that allows users to freely choose node operators, Swell breaks the high entry barrier of the staking market, reduces technical barriers, and promotes the decentralization of staking services. The platform also integrates Chainlink's Proof of Reserve (PoR) function, supports automated on-chain auditing, and provides users with high security and transparency. Swell's mission is to provide the world's best liquidity staking and re-staking experience, simplify the path for users to enter the DeFi ecosystem, promote the sustainable development of the Ethereum ecosystem, and provide multiple value support for stakers, node operators, and the entire Ethereum network.
Swelling Network Operation Logic
As an innovative decentralized and non-custodial Ethereum liquidity staking protocol, the core goal of Swell Network is to provide users with a flexible, transparent, and high-yield staking and re-staking experience. Unlike traditional staking protocols, Swell V2 provides rich features for stakers and node operators through unique mechanisms and high-degree-of-freedom node operation models.
The operation of Swell is completely different from other Ethereum staking protocols. In its final state, Swell V2 will involve:
Node operator mechanism
Swell's node operators are divided into two categories:
Allowlist Node Operator (Verification Node) : Join after strict review and provide 1 ETH collateral. The first batch of allowlist nodes includes well-known operators such as InfStones, RockX, and HashQuark.
Independent Node Operator : No license is required to join, but a 16 ETH deposit is required for each validator.
Node operators can set their own commission (0-10%), and 5% of the staking reward will be used as a protocol fee and enter the Swell DAO treasury. In the future, independent nodes will have greater participation freedom, thereby promoting platform decentralization.
Atomic deposit and flexible pledge
Swell supports atomic deposits of up to 1 ETH. Users can choose their own node operators and directly pledge ETH to Beacon Chain.
Users will receive two types of assets after depositing:
SwETH : An ERC-20 liquidity staking derivative token that represents a user's staking principal.
swNFT : A unique token that contains staking details, recording the node operator, validator address, and staking timestamp.
Unique features of swETH and swNFT
Function of swETH : As a non-variable liquidity token, swETH can be used to obtain additional income in DeFi protocols, but it will not automatically accumulate staking rewards.
Function of swNFT : swNFT is a container for swETH, storing staking rewards, equity information, etc. Even if the user does not hold swETH, swNFT can still continue to accumulate profits.
Pledge reward and redemption mechanism
When users want to withdraw pledged income or principal, they need to burn swNFT to redeem ETH. After the merger, it is expected to open the withdrawal function within 6-12 months, and the liquidity of swETH mainly relies on secondary market trading.
Competition and transparency
Swell provides an open market competition mechanism, where node operators compete in transparency, return on investment, and fees to attract more stakers. In the future, a smoothing pool similar to Rocket Pool will be introduced to optimize revenue distribution and MEV rewards.
Protocol security and multi-stage launch
Swell's secure launch plan is divided into five stages, currently in the first stage with 242 ETH deposits and 8 allowlist nodes. The progress of each stage depends on the achievement of the ETH threshold. The agreement uses Chainlink PoR technology for on-chain auditing to ensure the security and transparency of the platform.
Swelling Network and financing information
The core members of the Swell Network team include founder Daniel Dizon, Chief Technology Officer (CTO) Aaron Alderman, Chief Product Officer (CPO) Kevin Chee, and research director Abishek Kannan. Daniel Dizon is responsible for the overall strategy and direction of the project, Aaron Alderman is responsible for technical development and platform architecture, Kevin Chee is responsible for product development and User Experience, and Abishek Kannan leads research and innovation work.
Currently, Swell Network has received "support" from investment funds such as Framework Ventures, IOSG Ventures, Apollo Capital, Maven 11 Capital, and Bixin Ventures. In addition, individual traders have also invested funds in standard tasks such as Mark Cuban, David Hoffman, and Loong Wang...
Swell Network Token Economics
Swell Network's native token $SWELL has a total supply of 10 billion tokens and is designed to promote protocol governance, ecosystem development, and user incentives. It has multiple uses:
Governance Participation: SWELL token holders can vote on important decisions that affect the development and direction of the protocol. Swell Network and its governance token SWELL represent an exciting evolution of Ethereum staking and DeFi participation. By focusing on accessibility, liquidity, and community participation, Swell Network not only enhances user interaction with Ethereum, but also makes important contributions to the wider adoption of blockchain technology in the financial sector.
Re-staking rewards: Users can re-stake their SWELL tokens to earn rSWELL tokens, which help protect Swell's Tier 2 infrastructure while earning additional rewards.
Trading opportunities: SWELL tokens can be traded on various exchanges such as KuCoin and Bitget, allowing users to buy and sell based on market conditions.
Its allocation is as follows
Ecosystems and communities: 37% (3,700,000,000 SWELL)
Teams and consultants: 23.5% (2,350,000,000 SWELL)
Investors: 23.5% (2,350,000,000 SWELL)
Capital reserve: 16% (1,600,000,000 SWELL)

SWELL Future Value Analysis
Swell Network, as a non-custodial ETH liquidity staking protocol, has shown huge market potential and development space. According to official website data, the total amount of ETH staked by Swell Network has reached 281,553, and the basic annualized rate of return (APR) of swETH is 2.33%. Through the SWELL Incentive Mechanism, the total annualized rate of return is as high as 28.85%. The total number of stakers has exceeded 128,538, demonstrating the market's recognition of its innovation and high returns.
As Swell Network continues to innovate in the DeFi field, its development prospects are broad. The upcoming Layer 2 solution aims to enhance User Experience by providing faster transaction speeds and lower fees. In addition, cooperation with leading DeFi risk management companies will improve security measures within the protocol.
Despite the current market volatility, SWELL's performance is still impressive. In the past 24 hours, SWELL's price has fallen by 8.22%, while in the past 7 days it has only fallen by 1%. This performance indicates that despite short-term pressure, SWELL has shown strong recovery momentum in the past week, demonstrating the market's confidence in its long-term development.
If you want to seize this opportunity, you can go to The First to trade SWELL. As a high-yield liquidity staking token in the current market, SWELL provides users with the opportunity to participate in the DeFi ecosystem and obtain multiple benefits. On The First , you can not only conveniently purchase SWELL, but also get real-time price updates and market trend analysis, grasp market trends, and optimize investment decisions.
Whether you are an experienced investor or a DeFi novice, The First provides you with an excellent opportunity to enter the field of liquidity staking. In the current market recovery background, choosing SWELL may bring you long-term income growth. Seize the opportunity and start a new journey of wealth growth!