Swell Unveils Super swETH Vault Powered by Enzyme's Ethereum Staking Technology

Published: November 16, 2023 at 4:35 am Updated: November 16, 2023 at 4:35 am

Edited and fact-checked:
November 16, 2023 at 4:35 am

In Brief

Enzyme is driving Swell Network’s Super swETH Vault initiative, designed to incentivize staking participants and foster decentralization in the Ethereum staking ecosystem.

Enzyme Empowers Swell Network's Innovative Super swETH Vault

Enzyme Finance announced its collaboration with Swell Network, introducing the Super swETH Vault. This initiative is designed to reward Ethereum stakers and enhance decentralization in the Ethereum staking ecosystem.

Swell, a non-custodial liquid staking protocol, has already staked over 48,000 ETH and is advancing its mission through the Enzyme-powered Vault.

The Enzyme Vault stands out by offering lucrative yields for stETH holders. It achieves this by channeling 100% of Swell’s DAO commission to Vault depositors. This approach is complemented by staking yield and Pearls, which are redeemable for SWELL tokens at the end of Swell’s Voyage airdrop campaign.

Model not only incentivizes participation but also aids in diversifying Ethereum staking across various operators, thereby upholding Ethereum’s credible neutrality.

Enzyme, renowned for its on-chain asset management protocol, provides the infrastructure that powers the Super swETH Vault. Enzyme’s non-custodial smart contracts ensure stakers maintain self-custody of their funds. Its automated reporting and live dashboard enable easy tracking of the Vault’s progress in real time.

Today we are excited to formally announce Enzyme is powering @swellnetworkio‘s Super swETH Vault

Swell’s Super swETH initiative rewards staking participants and helps decentralise the Ethereum staking ecosystem.

https://t.co/lta409eJAC #DeFi #Staking #Ethereum $ETH

— Enzyme (@enzymefinance) November 16, 2023

The Drive Towards Decentralized Staking

Swell’s approach to tackling centralization risks in the liquid staking market is noteworthy. Swell’s strategy via the Enzyme Vault actively targets redistributing the significantly centralized staked ETH currently under the control of a single protocol.

This approach aims to mitigate centralization risks associated with staked ETH. This process leverages Enzyme’s native Lido unstaking feature to unstake stETH from Lido and swap it for Swell’s liquid staking token, swETH.

Participants in the Super swETH Vault stand to gain boosted yields from staking rewards, redirected Swell DAO revenue, and Pearls for the $SWELL Voyage airdrop. The Vault is open to stETH and ETH deposits, with the flexibility to withdraw after an initial lock-in period.

As the digital asset landscape evolves, Swell’s collaboration with Enzyme marks a significant advancement in decentralized finance (DeFi) and Ethereum staking. This collaboration illustrates a major progression in the field.

The initiative highlights the increasing focus on innovation and security within blockchain technology. It could set new standards for liquidity and asset management in the DeFi sector.

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About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master’s degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti