Ethereum-Based Swell Imports Wrapped Bitcoin to Serve as Liquid Restaking Token

SwBTC generates returns using the wBTC token, which is pegged 1:1 to BTC and maintains the value of the world’s largest cryptocurrency while being able to operate on the Ethereum network.

Swell’s goal is to expand the ability to re-stake to crypto users who want to benefit from the store of value that bitcoin offers while also taking advantage of returns in other ecosystems.

Ethereum staking project Swell has introduced its liquid resting token (LRT) “swBTC” that will allow bitcoin holders to earn yield from EigenLayer and rival resting protocols Symbiotic and Karak.

SwBTC generates returns using the wBTC token, which is pegged 1:1 to BTC and can be run on the Ethereum network, while also preserving the value of the world’s largest cryptocurrency.

According to an announcement shared with CoinDesk on Wednesday, users will be able to deposit their wBTC and receive swBTC in return, with returns expected to start flowing from mid-September.

Re-staking is a process where ether (ETH) tokens deposited as security for the Ethereum network can be reused to secure other blockchains and protocols.

Swell’s goal is to expand the ability to re-stake to crypto users who want to benefit from the store of value that bitcoin offers while also taking advantage of returns in other ecosystems.

“Swell’s roots are in Ethereum. But we’re optimistic about restaking across the blockchain ecosystem,” Swell founder Daniel Dizon said in the announcement. “That’s why we launched a liquid restaking token for Bitcoin, which will help… start to funnel up to $1 trillion worth of bitcoin liquidity into DeFi.”

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