How to Earn ETH on Swell: A Complete Guide to Staking and Liquidity Provisioning

Swell offers an easy-to-follow path to earning ETH through liquid staking and liquidity provision. With Swell’s non-custodial platform, users stake ETH, receive swETH as a liquid, yield-bearing token, and have the option to deposit swETH into liquidity pools for additional rewards.

This guide breaks down each step—from wallet connection to staking, earning rewards, and maximizing returns with DeFi pools.

Key Takeaways

1. Easy ETH Staking: Swell’s non-custodial approach lets users retain control of staked ETH, issuing swETH as a liquid token for easy participation in DeFi.
2. Yield-Bearing swETH: By holding swETH, users automatically earn staking rewards as the token’s exchange rate to ETH grows, allowing passive income.
3. Maximized Rewards in Liquidity Pools: Users can further increase their yield by adding swETH to liquidity pools on platforms like Balancer and Maverick, benefiting from boosted rewards.

Step-by-Step Guide to Earning ETH on Swell

1. Connect Your Wallet
   Begin by connecting a compatible wallet, such as MetaMask, Coinbase Wallet, or WalletConnect-enabled wallet. Visit app.swellnetwork.io and select “Connect Wallet.” Follow the specific prompts for each wallet type to finalize the connection.
2. Stake Your ETH
   With your wallet connected, enter the amount of ETH to stake. Note that while there is no minimum staking amount, Ethereum gas fees may affect smaller amounts. Confirm the transaction in your wallet to complete the staking process.
3. Receive swETH
   After staking, you’ll receive swETH, a liquid staking token that accrues staking rewards over time. To see swETH in your wallet, add the token by going to MetaMask’s menu and selecting “Add Token.”
4. Hold swETH and Earn Rewards
   Simply holding swETH allows you to earn rewards through its value appreciation against ETH. When ready, you can convert swETH back to ETH via supported liquidity pools or wait for Swell’s ETH withdrawal option.
5. Deposit swETH into Liquidity Pools
   For additional yield, Swell offers options to deposit swETH into liquidity pools on platforms like Balancer and Maverick. On Balancer, combine swETH and ETH for balanced staking and boosted rewards. On Maverick, add liquidity and closely configure distribution for optimal returns.

FAQs

1. What is swETH, and how does it work?
   swETH is a liquid staking token received when you stake ETH on Swell. Holding swETH lets you earn staking rewards as its value rises relative to ETH, providing a flexible alternative to traditional staking.
2. Are there any fees for withdrawing ETH?
   While Swell does not charge a fee for ETH withdrawals, standard Ethereum gas fees apply. The withdrawal function for ETH will be available in Q3, 2023.
3. How can I maximize my staking returns on Swell?
   To maximize returns, deposit swETH into liquidity pools on integrated platforms like Balancer or Maverick, where you can earn additional rewards through boosted staking and fee incentives.