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Swell Partners with Chainlink for Enhanced Transparency
Swell, a prominent Ethereum liquid staking protocol, has recently integrated Chainlink Proof of Reserve (PoR) on the Ethereum network. This integration aims to provide on-chain transparency regarding the reserves associated with rswETH, a liquid staking token offered by Swell.
Chainlink Support for Swell L2
Furthermore, Chainlink will also support Swell L2, a forthcoming Layer 2 solution designed for restaking with Chainlink Cross-Chain Interoperability Protocol (CCIP). These collaborations between Swell and Chainlink aim to strengthen their long-term partnership and enhance liquid staking and restaking capabilities within the DeFi ecosystem.
The Importance of Chainlink Proof of Reserve
Chainlink Proof of Reserve offers a sophisticated tracking solution specifically targeting the ETH reserves that underpin rswETH tokens. By leveraging the rswETH Chainlink PoR feed, Swell’s liquid restakers gain enhanced transparency and confidence in the ETH reserves supporting their investments.
The Chainlink PoR is designed to track off-chain and cross-chain assets, providing a comprehensive view of the reserve balances. Through the IPoRAddressList Wallet Address Manager contract, Swell’s network identifies authenticator addresses and calculates the total ETH staked on the Consensus layer. This process enables additional checks on the staking ETH and the overall rswETH supply ratio.
Utilizing Chainlink Solutions for Ecosystem Growth
In addition to the PoR integration, Swell is also leveraging Chainlink BUILD to accelerate ecosystem development and foster widespread adoption of liquid staking and restaking practices. By utilizing solutions such as Cross-Chain Interoperability Protocol (CCIP) and Price Feeds, Swell can facilitate cross-chain swETH transfers, obtain reliable price data for estimating gas costs, and track swETH reserves effectively.
Swell has surpassed $1 billion in Total Value Locked (TVL) through its restaked LST and LRT offerings. Daniel Dizon, the founder of Swell, expressed his satisfaction with the implementation of Chainlink Proof of Reserve for monitoring rswETH reserves and the support received for Swell L2 with Chainlink CCIP.
Chainlink: Empowering Decentralized Computing
Chainlink is recognized as a leading decentralized computing platform that enhances the authenticity of web applications. By enabling connectivity with real-time data, off-chain computation, and secure cross-chain interoperability across various blockchain networks, Chainlink has facilitated significant transaction volumes for financial institutions, startups, and developers.
Swell: A Pioneer in Ethereum Liquid Staking
Swell stands out as one of the largest Ethereum liquid staking protocols, boasting over $1 billion in TVL. The rswETH token, offered by Swell, ranks as the second most significant restaked LST on EigenLayer and enjoys popularity as a top-tier Liquid Rewards Token (LRT) with a user base exceeding 100,000.
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