What is Swell Protocol? The Future of Liquid Staking and Passive Income on Ethereum

Swell Protocol is revolutionizing Ethereum staking with its non-custodial, liquid staking platform that enables Ethereum (ETH) holders to earn passive income without locking up capital.

Built by Swell Labs and supported by Swell DAO, Swell combines blockchain and AVS rewards to offer DeFi users the flexibility of liquid tokens (LST or LRT), which can be used to earn even more yield across the broader DeFi ecosystem.

This user-centric staking model aligns with Swell’s mission to foster a secure, decentralized, and accessible financial future.

Key Takeaways

1. Seamless Passive Income: Swell allows users to earn rewards by staking or restaking ETH, gaining blockchain and AVS rewards, while retaining a liquid token (LST or LRT) for further DeFi engagement.
2. Flexible Withdrawal Options: With a minimum unstake of 0.005 ETH and a unique swEXIT NFT representing withdrawal requests, users can access their funds flexibly.
3. Community-Driven Protocol: Swell DAO, powered by $SWELL token holders, governs the protocol, enabling decentralized decision-making and growth.

What is Swell Protocol?

Swell is a liquid staking protocol designed for Ethereum holders looking to earn staking rewards without capital lockup restrictions. By using Swell, participants receive a yield-bearing liquid token (LST or LRT) after staking ETH.

This token can then be used within the DeFi ecosystem to earn additional yield, further enhancing earning opportunities. The protocol is operated by Swell Labs and governed by Swell DAO, a decentralized community of $SWELL token holders who contribute to Swell’s development and decision-making.

How Does Swell’s Withdrawal System Work?

Swell provides users with flexible withdrawal options and a unique swEXIT NFT to represent each withdrawal request. Users can unstake a minimum of 0.005 ETH with a maximum cap of 500 ETH per transaction.

Withdrawals are free of Swell fees but subject to Ethereum gas fees. In addition, users can sell or transfer the swEXIT NFT, passing along the withdrawal rights to the new owner.

Conclusion

Swell Protocol stands out as a powerful tool for Ethereum holders who want to participate in staking without sacrificing liquidity. With its liquid staking model and the community-driven governance of Swell DAO, Swell is shaping the future of decentralized finance by promoting transparency, security, and accessibility for all.

FAQs

1. What is Swell DAO, and how can I contribute?
   Swell DAO is a decentralized organization of $SWELL token holders who oversee the protocol's direction. Community members can contribute by participating in proposals on the Swell forum and promoting Swell online.
2. How long does it take to withdraw ETH from Swell?
   The withdrawal time varies from 24 hours to up to 14 days. Once in the withdrawal queue, you cannot cancel the request, but you can sell or transfer your swEXIT NFT.
3. Is there a minimum or maximum withdrawal amount?
   Yes, the minimum withdrawal amount is 0.005 ETH, and each transaction is capped at 500 ETH, with no limit on the number of withdrawals you can make.