Demex Daily #110: Swell to Introduce 'Restaked Rollup' Layer 2 Chain with Enhanced Restaking Features

What’s Interesting Today:

The Dencun upgrade, the most significant development on Ethereum since the Merge, was implemented on March 13, aiming to lower transaction fees on layer-2 networks and enhance scalability. Despite these improvements, challenges in throughput and centralization for layer-2 solutions remain, according to Tezos co-founder Arthur Breitman. Dencun, following the Shanghai upgrade, combines enhancements from nine Ethereum Improvement Proposals across Ethereum's execution and consensus layers. A key feature, proto-danksharding, is introduced to improve data availability and reduce layer-2 fees. However, these benefits will not immediately impact mainnet users, who must use layer-2 platforms for lower fees, potentially compromising on decentralization and security. Ethereum's gas fees are still high, with transactions and NFT sales incurring significant costs.


Swell Network, known for its liquid restaking services, is set to introduce a Layer 2 rollup chain using a "restaked rollup" model in collaboration with AltLayer, employing Polygon’s development tools. Scheduled for launch in the latter half of this year, the initiative aims to enhance user experience with increased scalability, reduced transaction costs, and native restaking benefits through a tie-up with EigenLayer. This new network will utilize Swell's upcoming governance token and integrate EigenLayer’s technologies for decentralized processing and data handling. This development is in line with Swell’s expansion strategy, following its establishment as a liquid ETH staking protocol in 2023 and the introduction of rswETH, a liquid restaking token, showcasing over $1.1 billion in total value locked in its products.