Restaking Reinvented – How Swellchain Aims to Transform DeFi

The Ethereum ecosystem has seen unprecedented growth in staking and DeFi protocols over the past two years, but many still face complex hurdles around yield, scalability, and capital flexibility. Enter Swellchain – a purpose-built Layer-2 blockchain backed by innovations in restaking, scalability, and yield optimization, marking its spot in the evolving landscape of DeFi infrastructure.

What Is Swellchain?

At its core, Swellchain is a non-custodial, restaking-focused Layer-2 (L2) network, built on Ethereum using the OP Stack—the same architecture powering Optimism and the Superchain network. Launched in December 2024, Swellchain is not just another L2 for faster or cheaper transactions. Instead, it exists specifically to power liquid restaking: the process where users’ staked ETH (and now, SWELL tokens) can be “restaked” to secure multiple networks, delivering modular security and multiplying yield possibilities across DeFi.

Unlike traditional staking, where your locked-up ETH only secures Ethereum, Swellchain lets users restake their ETH, earning not only Ethereum rewards but also yields from “Actively Validated Services” (AVS) like sequencers, oracles, and more. In return for staking or restaking on Swell, users receive liquid tokens such as swETH or rswETH that can be instantly used, traded, or deployed across DeFi for additional returns.

How Does Swellchain Work?

• Built for Liquid Restaked Tokens (LRTs): Swellchain specializes in LRT operations, ensuring blockspace and infrastructure are optimized for restaking—instead of competing for blockspace with generic smart contracts, Swell chain’s architecture is laser-focused on making capital more productive for stakers and DeFi participants.

• Proof of Restake: Rather than a traditional PoS or PoW system, Swellchain is secured using a novel Proof of Restake design. Security is pooled from EigenLayer’s state-of-the-art restaking mechanism, meaning restaked assets reinforce not just Swell, but other decentralized services too.

• OP Stack Integration: By leveraging Optimism’s OP stack, Swellchain inherits battle-tested tools, modularity, and EVM-compatibility, enabling developers to deploy DeFi, NFT, gaming, and more—while focusing on yield and security.

• AVS Architecture: Additional services from AltLayer AVS (MACH, VITAL, SQUAD) are integrated for rapid transaction finality, state verification and decentralized sequencing—enabling near-instant transactions and robust security.

• Bridge Infrastructure: Swell supports robust, multi-bridge solutions (like Stargate, Superbridge) for fast, cost-effective transfers of ETH and ERC-20 tokens between Ethereum and Swellchain.

The Journey So Far

• Launch & Early Growth: Swellchain launched on mainnet in December 2024, after pre-launch campaigns attracted over $1 billion in deposits from stakers via protocols like Etherfi, Renzo, and native Swell ecosystem users.

• User Numbers: By March 2025, TVL exceeded $292 million, with more than 37,700 unique users and steady ecosystem growth.

• Ecosystem & Integrations: Strategic collaborations with EigenLayer (restaking), AltLayer (AVS), RedStone (oracles), and DeFi protocols like Ethena and Renzo widened its reach. Notable launches include LayerZero, supporting cross-chain swaps directly on Swellchain, and successful incentives via events like the “Voyage” airdrop and liquidity mining campaigns.

Recent months have seen surging transaction counts, with features like one-click leveraged restaking, all-time high chain-wide TX activity, and new DeFi launches (Relend, Orki, Velodrome) expanding Swellchain’s utility and user base.

Features that Set Swellchain Apart

• Restaking Yield Layer: Swellchain isn’t just for standard DeFi but it offers enhanced, modular yield for stakers by unifying Ethereum LRTs under one protocol.

• Optimism Superchain Member: As an Optimistic Rollup in the Superchain ecosystem, Swellchain benefits from shared upgrades, security, and seamless interoperability with other L2s.

• liquid ERC-20 Restaked Tokens: swETH and rswETH are core to Swell’s design. These tokens empower users to unlock DeFi yields while enjoying the flexibility of instant liquidity.

• Low Transaction Fees: Integration with EigenLayer and restaked security allows for minimal fees while maintaining robust security at Layer-2.

• Decentralized Governance: On the roadmap is a fully autonomous DAO-backed model, ensuring protocol direction follows community votes and onchain decision-making.

• Active Funding & Builder Support: Swellchain has launched multiple waves of grants (recently a 125M SWELL fund with Thrive protocol) to foster the development of LRT-focused DeFi apps and ecosystem tools.

SWELL Token

The SWELL token is central to Swellchain’s incentive model, governance system, and restaking rewards. With a fixed max supply of 10 billion SWELL, the token’s circulation expands primarily through initial airdrops, restaking incentives, liquidity mining, ecosystem grants, and ongoing community development allocations.

• Initial Allocation & Circulating Supply:
  At launch, key allocations were set aside for the community airdrop, early users, ecosystem grants, team, and the Swell Foundation. Most liquid SWELL now circulates in DeFi or is locked for governance and reward purposes, with 2.61 billion SWELL currently circulating.

• Incentives and Utility:
  SWELL can be staked or locked to earn protocol rewards, boost yield on restaked ETH (e.g., rswETH), and participate in community votes. Holder influence is proportional to both the amount and duration the tokens are locked.

Recent Price Performance

As of August 13, 2025, the SWELL token trades at $0.01115, up over 32% in the past week. Market cap is around $29.2 million, underpinned by increased user engagement, surging transaction activity, and strong TVL growth on Swellchain. Recent trading volumes have spiked (+120% in the last 24 hours) as more users claim rewards and deploy rswETH in DeFi protocols.

Factors Driving Price:

• • Growing on-chain adoption and new DeFi integrations.

  • Increased staking and demand for governance rights.

  • Anticipation for future upgrades, DAO proposals, and potential airdrop phases.

Token Emissions:
Following the completion of all team, investor, and early community vesting, new SWELL tokens now primarily enter the market through restaking incentives and ecosystem development funds. This controlled emission is designed to balance liquidity for rewards and protocol growth while avoiding runaway inflation.

With Swellchain’s expanding ecosystem and increasing utilization of liquid restaking, SWELL’s value is increasingly tied to real protocol activity, governance participation, and network demand.

The Road Ahead

Looking forward, Swellchain’s core mission is to become the “restaking hub” for Ethereum’s Superchain. Key areas of focus include:

• Scaling secure LRT yield generation via advanced AVS integrations.

• Empowering DeFi, gaming, and real-world asset platforms with modular, specialized rollup infrastructure.

• Continued decentralization with a long-term move to fully onchain DAO governance.

• Attracting builders via grants, incentives, and open-source SDKs.

And with growing transaction volumes, new DeFi launches, and robust developer integrations, Swellchain aims to make restaking, high-yield DeFi, and low-fee blockspace accessible for both institutions and individuals.

Swellchain stands out as a visionary Layer-2 for the restaking era; it fuses liquid capital, advanced onchain security, seamless DeFi access, and community governance under one protocol. Its rapid growth, strong user traction, and focus on specialized infrastructure position Swellchain at the forefront of Ethereum’s next scaling phase where capital efficiency, modular security, and native yield are no longer trade-offs, but baseline features.