Swell
Swell recently launched a TVL acceleration program on Enzyme. The official vault with more information can be found here https://app.enzyme.finance/vault/0x325a0e5c84b4d961b19161956f57ae8ba5bb3c26
Below are some frequently asked questions;
What makes Swell different?
Swell is delivering the LST for DeFi and aims to launch with community in mind. Swell is actively developing the very first vote escrow and gauge system for liquid staking, as well as powerful new primitives and vaults to bring value to swETH stakers and pearl hunters alike.
Has Swell committed to self-limiting?
Swell intends to self-limit to 22% of all validators to ensure maximal Ethereum alignment.
What are the vault fees?
Enzyme will charge a 0.01% vault fee. This fee proposal is progressing through Enzyme governance and expected to complete on October 25, 2023. Until then, the vault will charge a 0.25% fee. Prior to maturity, withdrawal fees of 1% to swETH and 2% to stETH also apply. These withdrawal fees will not be payable when the vault has matured.
Can I withdraw anytime?
Deposits are locked for the first seven days. Following this period you can withdraw at any time for a small fee (1% to swETH and 2% to stETH). Withdrawal fees do not apply on maturity of the vault.
Is Swell incorporating DVT?
Swell believes in a dynamic liquid staking market that preserves the diversity and decentralization of Ethereum. That's why we are moving towards a permissionless operator set which will be enabled by mechanisms such as DVT, bonding, and others.
What are Pearls?
Pearls represent a share of the SWELL token airdrop.
How will the vault be impacted by the TGE?
Following the token generation event, Pearls will be replaced with SWELL token rewards.
What happens to the stETH when I deposit?
The stETH you deposit is unstaked from Lido and swapped into swETH.
Can I deposit by sending assets directly to the vault address?
When you deposit funds in the vault, new vault shares are minted. The opposite happens on the way out, with vault shares burned. Vault shares are ERC-20 tokens and can't be transferred.
How is the vault secured?
The Super swETH vault is built on Enzyme, a battle-tested non-custodial platform that allows you to retain control over your funds. Funds in the vault are controlled on-chain by smart contracts, and neither Enzyme nor Swell has control over deposits.
What are vault shares?
Vault shares are ERC-20 tokens that can't be transferred. When you deposit funds in the vault, new vault shares are minted. The opposite happens on the way out, with vault shares burned.
When will the vault mature?
Rewards will stop flowing to the vault 180 days from inception, on April 22nd, 2024. Swell reserves the right to close the vault at any point before 180 days have elapsed.
How can I maximize my Pearl earnings?
The earlier you deposit in the vault, the higher the Pearl-earning multiple you will lock in for the entire 180 days. The base Pearl-earning multiple of 1x is the same rate that you earn for LPing in swETH liquidity pools, and this increases up to 3x for early depositors.
Pearl-earning multiples:
0 to 10k stETH: 3x
10k to 25k stETH: 2.5x
25k to 50k stETH: 2x
50k to 100k stETH: 1.5x
For example, if you deposit when there is 5000 stETH in the vault, you will lock in a 3x Pearl-earning multiple for the remainder of the 180 days. Alternatively, if you deposit when there is 53,000 stETH in the vault, you will earn Pearls at 1.5x.
Users who leave before the end of the 180th day will have their pearls clawed back. Pearls clawed back will be burnt.
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