TL;DR
- Swell launches swBTC, a liquid restaking token that allows Bitcoin users to earn yields by depositing Wrapped Bitcoin (wBTC) into the Ethereum network.
- swBTC employs restaking, adapting the use of ETH as collateral to secure other chains, with yields expected to be available from mid-September.
- The goal is to offer users Bitcoin stability and yields on Ethereum, as well as facilitate the channeling of up to $1 trillion in Bitcoin liquidity into DeFi.
Swell, a staking project on the Ethereum network, has introduced its new token called swBTC, designed to offer yields to Bitcoin users. This token, known as a liquid restaking token (LRT), allows users to deposit their Wrapped Bitcoin (wBTC) to receive swBTC in return. The primary innovation of swBTC is its ability to generate yield using wBTC, a token pegged 1:1 to Bitcoin, while preserving the value of the cryptocurrency.
The operation of swBTC is centered around the concept of restaking, which allows Ethereum tokens, in this case ETH, to be used as collateral to secure other chains and protocols. Swell has adapted this concept for Bitcoin, aiming to extend the use of restaking to a new class of assets. According to the protocol’s plans, yields generated by swBTC are expected to be available to users starting from mid-September.
Introducing swBTC! ✨
The first Bitcoin LRT to offer restaking yield from the Ethereum ecosystem, including @Symbioticfi (@EigenLayer and @Karak_Network coming soon).
Restake WBTC to earn 3x Black Pearls and Symbiotic Points.https://t.co/duBPW6oOmJ pic.twitter.com/aiUGO4FOD0
— Swell (@swellnetworkio) August 14, 2024
Swell Expands Bitcoin and Restaking Opportunities
Swell’s goal with the launch of swBTC is twofold. First, to offer users the opportunity to leverage Bitcoin’s stability while also benefiting from yields in other ecosystems within the Ethereum network. Second, the firm seeks to expand the use of restaking within the blockchain ecosystem, opening new possibilities for up to $1 trillion in Bitcoin liquidity to be channeled into decentralized finance (DeFi).
Daniel Dizon, founder of Swell, explained that the project originated on Ethereum, but the firm is focused on catalyzing the potential of restaking across the entire blockchain ecosystem. According to Dizon, swBTC has the potential to revolutionize how BTC assets are integrated into DeFi, facilitating a significant flow of liquidity.
The launch of swBTC marks an advance for the DeFi economy, Bitcoin, and Swell. Starting next month, BTC users will be able to maximize the value of their assets within the Ethereum ecosystem.
