#SWELLUSDT

Swell Network is a project that helps Ethereum holders earn on their assets without losing their liquidity. The SWELL token is a central element of the ecosystem, providing opportunities for protocol governance, payment for services, and earning additional income.

What is Swell Network?

Swell Network is a platform where you can 'freeze' your Ethereum (ETH) to support the network's operation and receive rewards. However, instead of letting your ETH sit idle, you receive its substitute — the swETH token. This token can be used in various financial applications, traded, or invested to earn even more.

SWELL token: main functions

The SWELL token plays several key roles in the ecosystem:

  1. Participation in governance
    Imagine you are a shareholder in a company. Owning SWELL gives you the ability to vote on important changes in the project, such as adding new features or improving the service.

  2. Transaction fees
    SWELL is used to pay fees within the Swell ecosystem, especially if you actively use its services, such as transferring tokens or interacting with DeFi.

  3. Additional income
    You can stake your SWELL tokens in the protocol (known as restaking) and earn rewards as if you had deposited money in a bank.

swETH: your liquid token

When you freeze your ETH in Swell Network, you receive swETH in return. This token represents your staked ETH and the income they generate.

Example:
Suppose you invested 10 ETH. After a year, your swETH will be equal to 10.5 ETH (accounting for staking income). At the same time, you can sell swETH at any moment or use it to earn in other applications, such as farming or lending.

Can swETH be used outside of Ethereum?

Currently, swETH is only used on the Ethereum network. However, in the future, thanks to technological advancements, it may be made available for other blockchains. This would allow swETH to be used even more widely, such as on Binance Smart Chain or Polygon platforms.

Comparison with competitors

Swell Network has competitors in the liquid staking market:

  • Lido DAO is the largest player in the liquid staking market, offering stETH as a liquid token for Ethereum.

    Capitalization of approximately 1.6 billion.

  • Rocket Pool offers a more decentralized approach, allowing users to run their own nodes for staking.

    Capitalization of approximately 300 million.

The SWELL token and the Swell Network ecosystem provide Ethereum users the opportunity to earn on their assets while maintaining their flexibility. With the simplicity and transparency of Swell, it becomes an attractive choice for those who want to increase their income while remaining part of the Ethereum ecosystem.

Whether you are just starting to explore DeFi or are an experienced user, Swell Network can be a good tool for earning. Just be cautious and keep in mind that cryptocurrencies always involve risk.

Comparing the capitalization of SWELL (60 million) with its closest competitors, one can assume that the token has quite good growth potential. Especially if it gets added to spot trading on Binance.