RSWETH

Restaked Swell ETH (rsweth), or Restaked Swell Ethereum, is a Liquid Restaking Token that allows users to deposit LSTs and earn additional yield from EigenLayer. It represents your restaked ETH position while offering liquidity and flexibility. This setup gives holders access to uncapped EigenLayer restaking rewards and allows them to participate in various DeFi protocols. The rsweth token is designed to optimize yield while preserving liquidity for users within the Ethereum restaking ecosystem.

The primary use cases for rsweth include earning yield from EigenLayer restaking, engaging in DeFi protocols, and securing the Swell L2 (Swellchain). Users can earn blockchain rewards, restaked AVS rewards, and even Ecosystem Points for potential future airdrops. The token is designed for flexibility, allowing trading on a popular exchange, holding for long-term yield, or participating in governance and other Web3 opportunities. Its role in Swellchain also positions it for potential price correlation with network activity and overall Ethereum staking demand.

Built on the Ethereum blockchain, rsweth relies on EigenLayer to enable LST restaking and participation in Actively Validated Services (AVSs). It secures Swell L2 (Swellchain), an Optimistic Rollup that’s part of the Superchain ecosystem and uses the OP Stack. This Proof of Restake-powered infrastructure includes collaborations with Symbiotic and AltLayer. The rsweth token combines Ethereum’s base-layer security with cutting-edge staking architecture to deliver high yield potential, composability, and DeFi utility.

rswETH introduces three key technical innovations beyond standard liquid staking: 1) It employs a native restaking architecture that automatically delegates assets to EigenLayer strategies without intermediate wrapping, reducing smart contract risk. 2) The token incorporates distributed validator technology (DVT) via SSV Network, allowing validator operation across geographically distributed nodes for enhanced slashing resistance. 3) Its reward mechanism combines Ethereum staking yields with restaking rewards from multiple AVS providers, creating a multi-source yield stream that compounds through rebasing. This contrasts with single-protocol staking tokens that only capture base consensus rewards.

rswETH employs a defense-in-depth security strategy: 1) Multi-audit framework with ongoing audits from Sigma Prime and Nethermind, complementing initial audits by Zellic and Spearbit. 2) Immunefi-powered bug bounty program protecting $60B in assets across vulnerability tiers. 3) Modular contract design isolating deposit, reward distribution, and AVS coordination functions to limit exploit surfaces. 4) Chainlink's CCIP integration for secure cross-chain operations using decentralized oracle networks. 5) Real-time monitoring through Euler Finance's risk management infrastructure for leveraged positions.

Yes, rswETH maintains broad composability across DeFi: 1) It's integrated as collateral on lending platforms including Euler (Swellchain), Myso (Ethereum mainnet), and Raft (Arbitrum). 2) Serves as liquidity base on DEXs like Velodrome (Swellchain), Ramses (Arbitrum), and Trader Joe (Arbitrum). 3) Facilitates yield strategies through Pendle's yield tokenization and Sommelier's vaults. 4) Cross-chain functionality via Chainlink CCIP enables usage on EVM and non-EVM chains. This multi-chain utility stems from its ERC-20 standardization and Swell's oracle integrations.

Swellchain—as a dedicated restaking L2—provides four key advantages: 1) Customized execution environment for complex operations like one-click leveraged restaking through Euler, impossible on L1 due to gas constraints. 2) Native integration with RedStone oracles delivering high-frequency AVS reward data with L1 security inheritance. 3) Purpose-built MEV protection for restaking operations through ambient transaction pools. 4) Cross-chain settlement via Hyperlane for seamless asset transfers between Swellchain and connected ecosystems. These features enable advanced strategies while maintaining Ethereum's security bedrock.

rswETH employs a verifiable reward distribution system: 1) Daily rebasing calculates rewards based on on-chain data from EigenLayer and AVS providers, visible through Swell's analytics dashboards. 2) Oracle-reliant architecture uses RedStone and Chainlink to fetch real-time reward rates across multiple sources. 3) The reward accumulator contract undergoes weekly attestations by the Liquid Restaking Council to verify proper allocation. 4) Upcoming rswETH v2 introduces zk-proofs for reward validation, enabling trustless verification without third-party dependencies. This multi-layered approach ensures proportional reward distribution corresponding to restaked assets.