Swell launches its own layer-2 for restaking with Polygon CDK

rswETH, Swell’s liquid restaked token, will be the gas token used on this new rollup

article-image

Swell and Adobe Stock modified by Blockworks

share

Swell, a liquid staking protocol, will launch its own layer-2 rollup solution for restaking using AltLayer and EigenDA.

Restaked rollups are a design pioneered by AltLayer. Unlike a standard rollup solution, these variants are architectured to include vertically integrated Actively Validated Services (AVS) systems. 

In restaked rollups, Actively Validated Services are deployed as modular components which help to spread validation logic and responsibilities across the network. This significantly reduces the centralization of power and risk.

Read more: Ether.fi announces $23M Series A round as restaking interest grows

These components contribute to the system’s resilience by verifying the accuracy of rollup states and achieving faster transaction finality. This introduces a structured approach to scaling, focusing on security, efficiency and the distribution of control.

Swell has noted that the project’s liquid restaked token (LRT), rswETH, will be the chain’s native gas currency. The chain’s governance token will be SWELL, which will oversee not only the new Swell layer-2 but also swETH and rswETH. 

Blockworks research analyst Brick notes that launching a rollup will enable Swell to expand vertically across the value chain, offering native integration for the project’s LRT.

“Newer rollups often struggle with bootstrapping capital. In contrast, Swell’s ~$1.1 billion TVL positions the project better than most to kickstart activity on its new layer-2,” he said.

He adds that it is unlikely that Swell will be the only LRT provider to launch a rollup, noting that many of these solutions will likely utilize similar plug-and-play solutions, converging from a design perspective.

This sentiment is shared by Blockworks research analyst Ren Yu Kong, who notes that Swell’s move is similar to that of Blast earlier last year.

Read more: Blast from the past: 3 years on from the launch of ETH staking

“Just like how Blast kickstarted the idea of a layer-2 with yield bearing assets from native staking on ETH, it was only a matter of time before a project would choose to do the same with restaking given the extra yield available,” Kong said.

He acknowledged that building a restaked rollup will enable Swell to launch more products that are feature specific. 

“Building a restaked rollup allows the rollup to launch more ‘feature-rich’, with Swell planning services [like] decentralized sequencing and faster finality, which we expect more rollups, whether restaked or not, to include over the long term,” Kong said.

Updated March 14, 2024 at 9:43 am ET: Clarified use of rswETH and swETH.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

The derivatives giant will extend futures and options access to round-the-clock trading in early 2026

by Blockworks /
article-image

Global fiber network goes live as SEC clears 2Z token for utility use

by Blockworks /
article-image

The SPAC transaction positions Avalanche Treasury Co. as a Nasdaq-listed vehicle for institutional AVAX exposure by 2026

by Blockworks /
article-image

The collaboration brings regulated money market fund exposure to Polygon, with custody provided by Standard Chartered

by Blockworks /
article-image

FG Nexus teams with Securitize to bring its Nasdaq-listed equity onchain, offering tokenized stock trading through Ethereum

by Blockworks /
article-image

Sponsored

Taiko launches binding onchain governance and appoints three directors with expertise in global regulation, business strategy and blockchain tech

by Sponsored /