TL;DR
- Swell has launched its own layer-2 solution for restaking, using AltLayer and EigenDA, with the aim of improving scalability, security, and decentralization in staking.
- Restaked rollups incorporate vertically integrated Actively Validated Services (AVS) systems, distributing validation logic and reducing centralization and risk.
- The introduction of the native gas token rswETH and the governance token SWELL strengthens the protocol’s position, with a TVL of approximately $1.1 billion.
Swell, a liquid staking protocol, has launched its own layer-2 solution for restaking using AltLayer and EigenDA. This new initiative stems from the search for solutions to improve scalability, security, and decentralization in the cryptocurrency staking sphere. Instead of opting for a standard layer-2 solution, the protocol has chosen restaked rollups, an innovative architectural design conceived by AltLayer.
Restaked rollups, unlike conventional rollups, incorporate vertically integrated Actively Validated Services (AVS) systems. These modular components distribute validation logic and responsibilities across the network, thus reducing centralization and risk. This approach not only enhances system security and efficiency but also distributes control more equitably among network participants.
Swell is building the L2 for restaking!✨
Swell's very own zkEVM—powered by @0xPolygon CDK and built in collaboration with @eigen_da and @Alt_Layer—will be underpinned by @Chainlink services to help kickstart dApp adoption.
The revolution begins here: https://t.co/1FtvJSALgs pic.twitter.com/sGBRQUhywA
— Swell (@swellnetworkio) March 13, 2024
One of the highlights of the initiative is the introduction of its own native gas token, rswETH, which will be used for transactions on the new layer-2. Additionally, the governance token SWELL will oversee both the new layer-2 of the protocol and other associated tokens, such as swWTH and rswWTH.
Swell Directly Targets the Future of Restaking
The adoption of this layer-2 solution by Swell has been bolstered by its solid TVL, amounting to approximately $1.1 billion. This robust financial position places the protocol in an advantageous position to stimulate activity on its new layer-2, as well as to vertically expand along the value chain and offer native integration for its LRT token.
Swell doubles down on its commitment to innovation and responds to emerging trends within the crypto industry. As seen previously with the launch of Blast, there is a growing interest in layer-2 solutions that enable restaking of assets, thus leveraging additional yield-generation opportunities.
It is likely that more projects will follow Swell’s example and explore layer-2 solutions to enhance the scalability, security, and functionality of their platforms. Ultimately, these technological advancements will not only benefit individual users but also strengthen the underlying infrastructure of the crypto ecosystem as a whole.
