Swell Network in-depth analysis: Liquidity staking + Chainlink PoR, what is the growth potential of tokens?

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远山洞见2024/11/05 09:34

By:远山洞见

I. Project introduction

Swell Network is a decentralized and non-custodial Ethereum staking protocol aimed at providing users with a convenient experience of liquidity staking and re-staking, simplifying the path for users to access DeFi, while ensuring the security of the Ethereum network and the sustainability of staking services. Swell allows ETH holders to stake without locking their funds and obtain liquidity tokens such as swETH and rswETH, which can be further used in other DeFi protocols to increase ROI.

As a leading staking solution provider in the market, Swell Network has taken the lead in allowing users to freely choose node operators for staking, breaking through the traditional high admission threshold, reducing the technical difficulty of staking participation, and promoting network decentralization. The platform has built-in Chainlink Proof of Reserve (PoR) function, supports automatic on-chain auditing, and provides high-level security and transparency.

In addition, Swell's Liquidity Re-Pledging Token (rswETH) allows users to re-pledge on the EigenLayer platform to earn more profits without locking in liquidity. Through this mechanism, Swell expands the application scope of staking and re-pledging, providing users with multiple sources of income and supporting the long-term development and security of the Ethereum ecosystem.

Swell Network in-depth analysis: Liquidity staking + Chainlink PoR, what is the growth potential of tokens? image 0

II. Project highlights

1. Custodial staking and liquidity tokens: Swell provides non-custodial ETH staking services, allowing users to obtain liquidity tokens swETH and rswETH, ensuring the safety of funds and participating in the DeFi ecosystem, realizing flexible operation and maximizing profits.

2. Staking function: Users can re-pledge on EigenLayer through rswETH to obtain additional income without locking in liquidity, enhancing yield and enhancing cyber security.

3. Low-threshold staking and decentralization: Allowing any amount of ETH to be staked without a minimum threshold, users can freely choose node operators, promoting widespread participation and network decentralization.

4. Security and Transparency: Pioneering the use of Chainlink Proof of Reserve (PoR) for automatic on-chain auditing, collaborating with multiple blockchain security companies to ensure the security and transparency of user funds.

5. Strong financing background : Swell has received investments from several well-known institutions such as Framework Ventures, totaling $3.75 million in seed round financing. Angel Investors include industry leaders such as Mark Cuban, supporting its continued development and innovation.

III. Market value expectations

Swell Network ($SWELL) is a protocol that focuses on providing decentralized and non-custodial Ethereum staking services. Based on the current circulation of 1.40 billion $SWELL tokens and a unit price of 0.0428 dollars, the circulation market value of Swell is $42,000,000. To estimate the circulation market value of $SWELL tokens consistent with similar decentralized staking and liquidity protocols, the unit price of the token can be calculated as follows:

Benchmark project type and market value expectations :

Puffer Finance ($PUFFER) - A liquidity staking protocol based on EigenLayer

Token price: 0.265 dollars

Market capitalization: $27,206,155.565

If the circulating market value of $SWELL is the same as $PUFFER, the token unit price is about 0.0194 dollars

Increase: -54.67% of current price

Renzo Protocol ($REZ) - A re-staking protocol based on EigenLayer

Token price: 0.03 dollars

Market capitalization: $51,317,772.208

If the circulating market value of $SWELL is the same as $REZ, the token unit price is about 0.0367 dollars

Increase: -14.25% of current price

Ether.Fi ($ETHFI) - Decentralized Staking Protocol

Token price: 1.25 dollars

Market capitalization: $259,396,963.407

If the circulating market value of $SWELL is the same as $ETHFI, the token unit price is about 0.1852 dollars

Increase: + 332.71% of the current price

IV. Token Economics

Swell Network's native token $SWELL has a total supply of 10 billion tokens and is designed to promote protocol governance, ecosystem development, and user incentives.

Token distribution:

Ecosystem and Community (including 8% airdrop): 37%, of which 900 million tokens are unlocked during TGE (Token Generation Event) to incentivize community participation and promote ecosystem development.

Team and consultants: 23.5%, locked for 12 months from TGE, and then linearly released for 24 months to ensure the long-term motivation of the core team.

Investors: 23.5%, locked for 12 months from TGE, followed by 5% release, and the remaining part will be linearly released in the next 18 months to protect investors' rights and promote the stable development of the project.

Fund reserve: 16%, of which 500 million tokens will be unlocked during TGE, and the remaining 1.10 billion will be locked for 6 months and linearly released for 36 months.

TGE (Token Generation Event) Information:

Circulation ratio: 14%

Published Price: 0.03 USD/piece

Fully diluted valuation (FDV): $300 million

Market capitalization: 42 million USD

V. Team and financing

Swell Network is led by founder Daniel Dizon, and the team includes CTO Aaron Alderman, Chief Product Officer Kevin Chee, and research director Abishek Kannan.

In 2022, Swell received a $3.75 million seed round financing led by Framework Ventures, with participation from IOSG Ventures, Apollo Crypto, and well-known figures such as Mark Cuban and Kain Warwick from Angel Investor to help the project grow rapidly.

VI. Risk Warning

1. The liquidity tokens (swETH and rswETH) provided by Swell can be used in DeFi, but in extreme market conditions, there may be insufficient liquidity, affecting the exchange efficiency and value stability of the tokens.

2. For ordinary users, staking and re-staking operations may involve complex steps, and a little carelessness may lead to operational errors or asset transfer errors. In addition, participating in DeFi protocols requires users to have a certain technical understanding and wallet management ability. Any mistake may result in loss in capital.

3. Although Swell Network has conducted multiple rounds of audits and introduced measures such as Chainlink Proof of Reserve (PoR), the complexity of smart contracts can still lead to unknown vulnerabilities or code flaws, which can be exploited by malicious attackers, causing losses in capital. Users should keep an eye on contract updates and security audit reports and understand their potential risk exposures.

VII. Official link

Website ： https://www.swellnetwork.io/

Twitter： https://x.com/swellnetworkio

Discord： https://discord.com/invite/swellnetworkdao

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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