EigenLayer is a protocol built on top of the Ethereum blockchain that introduces a concept called "restaking," allowing users to put their staked ETH to further use. With its strong security measures and extra yields for stakers, EigenLayer has caught the attention of many.
EigenLayer lets users restake Liquid Staking Tokens (LSTs) and staked ETH with operators for Actively Validated Services (AVSs), which means they can earn multiple rewards in addition to the rewards they get for staking ETH in the first place (is expected to become available in Q3 2024).
Currently, there are 12 LSTs that can be restaked with EigenLayer. All of them can be delegated to Everstake and you can find dedicated how-to guides for all of them via this link. This particular covers swETH, Swell's liquid staking token.
What Is swETH?
Swell is a non-custodial staking protocol focusing on liquid staking and restaking, particularly Ethereum. It functions as a non-custodial platform, meaning that users earn blockchain rewards while staking and retain control of their ETH.
Swell provides liquid tokens swETH representing the staked ETH; each swETH token is backed by 1 ETH. These tokens can be used in DeFi applications for further yield generation. The value of swETH increases as rewards accumulate from staking ETH.
The total market value of a cryptocurrency's circulating supply of swETH as of 5/11/2024 is $760.38 million.
How to Restake and Delegate Swell’s swETH on EigenLayer
Restaking Swell’s liquid staking token swETH on EigenLayer is fairly simple but takes several steps.
- First, get swETH. In the case of Swell, you get LSTs automatically as you stake your original ETH, so please refer to Swell’s website.
- After obtaining swETH, go to the EigenLayer app and connect your wallet as prompted by the interface. You can choose from MetaMask, Coinbase Wallet, OKX Wallet, and Wallet Connect.
- Once connected, you’ll see a dashboard with your restaked and delegated ETH or LSTs. Hit Restake Your Tokens to proceed.
- You will be offered several choices, including liquid staking tokens and native restaking of staked ETH.
Click Swell Staked Ether to access the next screen for depositing and unstaking swETH.
- Specify the amount of swETH you wish to deposit, check everything is correct (including the address), hit Deposit, and then confirm and sign the transaction.
- Once the transaction is successful, you’ll see a pop-up in the corner of the screen confirming the deposit was successful.
Then you can go to the Dashboard, where you’ll be able to see your restaked swETH tokens in the Restaked section.
- Head over to the Operator tab in the top section of the screen. On this tab, you can see a selection of operators available for delegation.
In this example, we’ll delegate to Everstake. To delegate, enter “Everstake” in the search bar or go directly to our profile on EigenLayer.
- Hit Manage, as shown in the screenshot above, and then Delegate in the right-hand section.
- Approve and sign the transaction in your wallet, and you’re done! You’ll be able to control your stake from the same dashboard.
Why Delegate to Everstake
Everstake has consistently pushed the boundaries of staking. We were among the first 30 operators chosen for EigenDA, the first AVS on EigenLayer, on the Goerli testnet. Everstake has had zero slashing events on Ethereum, developed the first non-custodial non-liquid pooling solution for Ethereum, and created numerous infrastructural services for other blockchains like Solana and Cosmos.
Trusted by over 735,000 users, Everstake is a StakingRewards Verified Operator renowned for industry-leading security, reliability, and support. Choose Everstake and gain peace of mind knowing your assets are in the hands of experienced professionals offering competitive rates.
Final Thoughts
Restaking opens exciting possibilities for users and projects. Users gain access to potentially higher yields (available Q3 2024) and improved liquidity, while projects benefit from enhanced security, decentralization, and wider participation.
Since restaking is a relatively new concept, more AVS will join the fray soon. Still, its appeal to the community of delegators and developers is so high that it is likely that the selection will become much broader in no time, and Everstake will be happy to support the best of them.
Ready to experience the future of staking? Restake your LSTs with Everstake today.
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