Swell Network (SWELL)

Overview

Swell Network is an Ethereum-based protocol for liquid staking and restaking. It lets people deposit ether (ETH) and receive a token that represents their staked position. That token can be held or used in decentralized finance, often called DeFi, while the underlying ETH takes part in staking. Swell describes its products as non-custodial: users interact with smart contracts through their own wallets. (docs.swellnetwork.io)

The network has three tokens that serve different purposes. swETH represents ETH staked through Swell. rswETH represents a liquid restaking position. SWELL is the ecosystem’s governance token. Keeping these roles separate helps explain the project: swETH and rswETH relate to deposited ETH, while SWELL connects holders to governance and other parts of Swell’s economic model. The team is also expanding its work through Faro, a trading research platform linked to the Swell ecosystem. (swellnetwork.io)

History & Team

From staking to a broader ecosystem

Daniel Dizon is a co-founder and has been identified by Swell as its chief executive. The protocol began offering Ethereum liquid staking in 2023. Its early focus was to make staking accessible without requiring each user to run a validator. It later added liquid restaking through rswETH. Swell has named Framework, IOSG Ventures, and Maven 11 Capital among its backers. (swellnetwork.io)

SWELL became available for claims in November 2024. Its launch followed the Voyage campaign, which rewarded early stakers and liquidity providers. Swell also developed Swellchain, an Ethereum layer-2 network built around restaked assets. That chapter ended in 2026: the team announced Swellchain’s sunset in April and set June 30, 2026, as the date for the chain to stop running. The Ethereum-based swETH, rswETH, and SWELL products continued separately. Swell then directed more of its work toward Faro. (swellnetwork.io)

Technology & How It Works

Liquid staking with swETH

Ethereum uses proof of stake. Validators help check transactions and maintain the network, earning rewards for that work. Swell brings deposits together and assigns staking work to node operators. When a user deposits ETH through its staking product, the protocol issues swETH, an ERC-20 token that represents the staked position. The user can hold swETH or transfer it to an application that supports it. (swellnetwork.io)

Swell designed swETH as a reward-bearing token. The number of swETH tokens in a wallet stays the same as staking rewards build. Instead, the amount of ETH represented by each swETH changes through an exchange rate. Swell has also integrated Chainlink Proof of Reserve to report on the ETH reserves backing swETH. For users, the key idea is simple: the receipt remains usable as a token while its underlying staking position continues to operate. (swellnetwork.io)

Liquid restaking with rswETH

Restaking extends the use of staked assets to support other services. Swell’s rswETH product connects ETH restaking with EigenLayer and issues a liquid token in return. This gives users a transferable representation of a restaked position, which supported DeFi applications can accept. Swell has enabled redemption of rswETH through its app, alongside its swETH withdrawal route. (swellnetwork.io)

The technology has several connected parts: Ethereum validators perform the underlying staking, smart contracts account for deposits and receipt tokens, and DeFi applications decide how those tokens can be used. SWELL operates on Ethereum as an ERC-20 token. Swellchain’s closure did not move SWELL to a new chain or end the Ethereum staking products. (swellnetwork.io)

Tokenomics & Utility

Distribution and governance

Swell set SWELL’s original total supply at 10 billion tokens. Its published launch allocation assigned 35% to community and ecosystem uses, 25% to the team, 25% to fundraising, and 15% to the foundation. Within the community share, 8.5% was allocated to Voyage participants. The published plan included release schedules for team, fundraising, and other allocated tokens rather than placing every token into circulation at launch. (swellnetwork.io)

SWELL was introduced as the Swell DAO’s governance token. Swell’s governance plan gives holders a role in proposals covering matters such as protocol settings, liquidity incentives, and the selection of operators and services. The project also introduced rSWELL as a liquid restaking form of SWELL. Some of rSWELL’s original uses were tied to Swellchain, so the 2026 change in direction matters when describing the token’s present role. (swellnetwork.io)

Fee Flow and Faro

In March 2026, Swell launched Fee Flow, an auction system for fees generated by swETH and rswETH. Participants use SWELL to purchase the collected fee assets, and the SWELL received by the system is sent to a burn address. In this design, use of the staking products creates assets for auction, while the auction creates a use for SWELL. (swellnetwork.io)

Swell has also said SWELL will have a role inside Faro. Faro identifies SWELL as its ecosystem token and describes in-app utility as a future development. The precise scope of that utility will depend on the features Faro introduces. (swellnetwork.io)

Ecosystem & Use Cases

Using staking receipts in DeFi

Liquid tokens make staked ETH easier to use elsewhere. A swETH holder can place it in a supported liquidity pool, where traders exchange tokens, or use it in an application that accepts swETH. Swell’s ecosystem lists integrations including Uniswap, Balancer, Sushi, and Euler. Its featured rswETH integrations have included Derive and King. These applications offer different functions; they are separate from the basic act of staking ETH through Swell. (swellnetwork.io)

For developers, swETH and rswETH provide tokens representing staking and restaking positions that applications can integrate. For users, the distinction is whether they want a liquid form of ordinary ETH staking or a liquid form of a restaking position. Swell’s former layer-2 ecosystem hosted additional applications, but its closure shifted attention back to the Ethereum products and toward Faro. (docs.swellnetwork.io)

Faro adds a different use case to the broader project. It brings together market data, social signals, research tools, and trade execution connected to Hyperliquid. Its relationship with SWELL links the token to an expanding product area beyond Ethereum staking, while the established staking products continue on Ethereum. (faro.io)

Advantages & Challenges

Swell’s main advantage is flexibility. Its receipt tokens let people hold a transferable token while their ETH participates in staking or restaking. This has allowed other applications to build uses around staked assets. The swETH exchange-rate design also lets rewards be reflected without continually increasing the holder’s token count. Swell lists security and risk-management work with firms including Sigma Prime, Hexens, Immunefi, Gauntlet, and Chaos Labs. (swellnetwork.io)

The main challenge is complexity. Staking, restaking, receipt tokens, governance, and fee auctions each have a different purpose, and the benefits of an integration depend on the application using the token. Swellchain’s sunset also changed the setting for several earlier SWELL plans. As the project develops Faro, it must connect that newer product direction with the Ethereum staking products and define how SWELL works across them. (swellnetwork.io)

Where to Buy & Wallets

Buying and storing SWELL

SWELL is available on Coinbase, Kraken, and KuCoin. The services and purchase methods offered by an exchange depend on the customer’s location. SWELL is an Ethereum ERC-20 token, so a compatible Ethereum wallet can hold it. Swell identifies MetaMask and Coinbase Wallet among wallets that can connect to its app. (coinbase.com)

SWELL and the staking receipts are separate assets in a wallet. Buying SWELL provides the governance token; depositing ETH into Swell’s staking or restaking products produces swETH or rswETH. Swell’s published Ethereum contract address for SWELL is 0x0a6E7Ba5042B38349e437ec6Db6214AEC7B35676. The address identifies the token when adding it to a wallet that requires manual entry. (swellnetwork.io)

Regulatory & Compliance

Legal and religious considerations

In the United States, the Securities and Exchange Commission’s 2026 interpretation discusses how federal securities law applies to certain proof-of-stake activities and staking receipt tokens. It describes circumstances in which a receipt for a deposited non-security crypto asset falls outside the definition of a security. That framework addresses staking arrangements; the legal treatment of SWELL as a governance token depends on its own facts. US tax guidance also treats staking rewards received under the circumstances described by the IRS as income when the recipient gains control over them. (sec.gov)

In the European Union, the Markets in Crypto-Assets regulation, or MiCA, sets rules for many crypto-asset services, including requirements for providers operating within its scope. Its practical effect on access to SWELL can therefore depend on the service and jurisdiction involved. (esma.europa.eu)

Swell’s Shariah status is not publicly established by a clear halal or haram ruling. Sharlife lists a SWELL assessment, but its public listing does not disclose the detailed Shariah judgement. An assessment of Swell may also examine its activities separately, since holding a governance token, earning Ethereum validation rewards, and using a DeFi lending product involve different arrangements. (sharlife.my)

Future Outlook

Swell’s direction brings together continuing Ethereum staking products and a newer focus on Faro. The staking side has established roles for swETH and rswETH, while Fee Flow gives SWELL a role in handling protocol fees. Faro’s research and trading tools open another possible setting for the token, although its stated in-app utility remains a future feature. How these products develop together will shape SWELL’s place in the ecosystem. (swellnetwork.io)

Summary

Swell Network began by making staked ETH usable through liquid tokens and expanded into restaking, governance, and DeFi integrations. SWELL is the Ethereum-based token tied to governance and Fee Flow, with a planned role in Faro. The project’s place in crypto now rests on both its continuing staking products and the development of that newer platform. (docs.swellnetwork.io)