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Swell Network Is ETH’s First Liquid Staking Marketplace

Ethereum continues to shine in the spotlight these days. The Merge is live, and everyone in the crypto space talks about ETH and the related subjects.

At the moment of writing this article, ETH is trading in the red and the coin is priced at $1,586.

Ethereum’s price analysis

Messari.io notes that Swell Network, currently in its guarded mainnet, is a permissionless, non-custodial Ethereum liquid staking protocol.

The notes also reveal for readers the fact that Swell is the first service to integrate atomic deposits; allowing users to directly deposit ETH to their validator of choice — creating a defacto staking marketplace.

It’s also worth noting that in order to liquefy non-fungible stake, Swell mints and returns an NFT, swNFT, to depositors.

Ethereum’s transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) has given ETH holders the opportunity to secure the Beacon Chain.

This is Ethereum’s new central consensus hub.

In exchange for locking (“staking”) their holdings as collateral to create new blocks, validators get the juicy ability to receive inflationary rewards.

Now, that the Merge took place, rewards will also include priority fees and maximum extractable value (MEV), offering stakers an attractive 7–14% APY.

According to official notes, “the large minimum capital requirements (32 ETH), technical complexity around the validation process, and extended lockup period (six months to one year after The Merge) stand in the way of ETH holders’ ability and willingness to stake.”

In order to address these user experience issues an entire industry called Staking-as-a-Service spawned.

“The most popular implementation to-date has been non-custodial liquid staking, led by Lido and also serviced by alternatives such as Rocket Pool.”

It’s also worth noting the fact that the current set of non-custodial liquid staking protocols have been successful.

These were able to amass more than 34% of all staked ETH. But there is a lot of untested whitespace in terms of design and implementation.

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