Swell launches Layer2 project, with rswETH as its native token.

Ethereum re-staking project Swell announced the launch of its own Layer2, expected to go live in May. Positioned as a "Layer2 designed specifically for re-staking," it aims to empower its native liquidity re-staking token LRT rswETH with more utility, hoping to bring greater synergies to the Swell protocol. Asset pre-staking activities have already begun.

Swell Launches Layer2 Network

Introduction to Swell Layer2 Basics

Swell L2 is built on Polygon CDK and AlterLayer's packages, using zkEVM technology as the proof upload mechanism, and network security will be collaborated with EigenLayer as AVS, while data availability will be supported by EigenDA.

The native fuel token of Swell Layer2 will be rswETH, which is the LRT introduced by Swell and the first LRT to serve as a fuel token. The governance tokens of the chain include SWELL, swETH, and rswETH.

According to the official website, the security of the Swell Layer2 network is protected by a triple pledge mechanism, where users can choose to pledge three types of assets: SWELL, ALT, and rswETH to safeguard network security.

All users who deposit assets into Swell Layer2 can receive native income from the network's LRTfi, similar to the design concepts of Blast, Manta, and Memenet.

Acceptance of Various LST, LRT Assets

Swell Layer2 will be able to accept deposits of various assets from users, in addition to ETH, accepting competitors and partners' LST, LRT, including:

• Swell's own swETH, rswETH
• Renzo's ezETH
• Ether.fi's eETH, weETH
• StakeStone's STONE
• Pendle's PT-rswETH
• Eigenpie's mswETH, mstETH, mwbETH, mmETH
• Lido's stETH, wstETH
• AlterLayer's ALT

Marketing Activities Related to Swell Layer2

The network is not yet live, but it has opened pre-deposit activities.

The Swell team stated that users who deposit assets into Layer2 will receive more SWELL token airdrops, with hints that the airdrop will occur in the third quarter of this year. Additionally, users who participate in the first four weeks can share 1 million EigenLayer points with other participants.

Enhancing LRT Utility of Swell Layer2

From the above design structure and collaboration model of Swell Layer2, we can summarize the team's two main design directions:

• Amplify the utility of rswETH: Within the Swell Layer2 ecosystem, rswETH can be used for network fuel fees, governance tokens, and network validator pledge assets to solve the dilemma of unused LRT assets as much as possible.
• Leverage asset utility: The positioning of LRT projects itself is to emphasize amplifying user benefits, and Swell Layer2 inherits this positioning, providing users with multiple rewards and native income. However, it also increases security assumptions and risks.

If Swell Layer2 can thrive, it will make the Swell protocol more robust, as the greater the demand for rswETH, the more people will use Swell's re-pledge protocol.

However, many details still need to wait for the official team to release further information, and there are certain risks involved. Users who wish to participate should evaluate carefully.