Lead paragraph
Swell occupies a niche in the liquid staking and restaking landscape, issuing swETH and rswETH while operating its own restaking-secured L2, Swellchain. Launched in 2023, the protocol has grown to $0.11B in TVL and passed two security audits. This review assesses Swell’s mechanics, security posture, competitive position, and risks as of mid-2026.
What it is
Swell is a liquid staking and restaking protocol that launched in 2023. It issues swETH (a liquid staking token) and rswETH (a liquid restaking token), allowing ETH holders to stake and restake while maintaining liquidity. In 2024, Swell launched Swellchain, an L2 secured by EigenLayer via EigenDA and built with Polygon CDK. The protocol also plans to integrate Symbiotic-secured Actively Validated Services (AVSs). As of mid-2026, Swell holds roughly $0.11 billion in TVL across Ethereum and Swellchain.
How it works
Users can deposit ETH into Swell’s staking pool to receive swETH, which accrues staking rewards over time. swETH is a reward-bearing (non-rebasing) token whose exchange rate to ETH appreciates as rewards accrue, and it can be used across DeFi. For restaking, users deposit ETH or swETH to mint rswETH, which represents a liquid claim on restaked ETH that earns additional rewards from AVSs. The protocol employs a dual-token model to separate staking and restaking risks. Smart contracts are governed by the Swell DAO via the SWELL token. The architecture relies on a set of verified contracts audited by Sigma Prime and Mixbytes. Swellchain, the L2, uses EigenDA for data availability and Polygon CDK for its zk-rollup framework, aiming to secure multiple AVSs through restaking.
Key numbers
- TVL: $0.11 billion
- Chains: Ethereum, Swellchain
- Audits: 2 (Sigma Prime, Mixbytes)
- Launched: 2023
- Token: SWELL (governance)
- No publicly disclosed security incidents to date.
Security and audits
Swell engaged Sigma Prime and Mixbytes for smart contract audits. So far, there have been no publicly reported security incidents. The governance model is a DAO, with key parameters managed by SWELL holders. The contracts are upgradable via a multisig, details of which are not fully disclosed, introducing some centralization risk. While the audit count is low compared to some bluechip protocols, the absence of incidents and the use of battle-tested restaking infrastructure (EigenLayer, Symbiotic) partially mitigate concerns.
Strengths
1. Dual-token risk separation: swETH isolates staking rewards from restaking risks, while rswETH captures AVS yield; this design has drawn $0.11B TVL.
2. Native L2 integration: Swellchain leverages EigenDA and Polygon CDK, offering low-cost transactions and a venue for future AVSs.
3. Multi-infrastructure restaking: Plans to integrate both EigenLayer and Symbiotic could diversify slashing and reward sources.
Weaknesses and risks
1. Small relative TVL: At $0.11B, Swell is an order of magnitude smaller than Lido ($25B) and EigenLayer ($12B), limiting liquidity and network effects.
2. Dependency on restaking layers: rswETH’s utility and security depend on EigenLayer and Symbiotic; an incident on either could impact Swell.
3. Governance concentration risk: The SWELL token’s distribution is not fully transparent, and the DAO combined with a multi-sig upgradability could lead to centralization.
How it compares
Relative to Lido Lido, the dominant liquid staking protocol with $25B TVL and stETH’s deep DeFi integration, Swell remains small. Its TVL of $0.11B is an order of magnitude lower. Against EigenLayer EigenLayer, the restaking incumbent with $12B TVL, Swell’s LRT offering is still early. Swell’s Swellchain L2 distinguishes it, but Symbiotic Symbiotic ($2B TVL) also offers restaking flexibility with multiple collaterals. Swell’s dual-token approach and planned AVS integrations provide a niche, but it lacks the audit depth and liquidity of competitors. Aave Aave and Morpho Morpho Blue operate in lending, not direct competitors, though restaking tokens could eventually integrate with their markets.
Verdict
Swell is an ambitious project blending liquid staking, restaking, and L2 infrastructure. Its $0.11B TVL and two audit reports provide a reasonable security baseline, but the protocol remains exposed to the risks of its larger restaking dependencies. While the Swellchain L2 adds a unique dimension, user and developer adoption are yet to be proven at scale. Overall, Swell scores 7.5 out of 10, reflecting a promising but unproven protocol in a competitive sector.