Securing Swell L2 with rSWELL on EigenLayer

Swell L2 will decentralize and scale the core parts of its infrastructure through AVS's offering services such as sequencing, verification and finality, which are secured by restaked assets.

With EigenLayer's new permissionless token support protocol feature, all ERC-20 tokens can now be restaked to provide this cryptoeconomic security. 

This sets the stage for a key piece of the Swell vision to fall into place: the restaking of Swell Token (SWELL).

Dual staking and beyond

As explained by Eigenlayer, Dual Staking represents a way of using two tokens to secure one network.
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This avoids a situation in which a system depends on the value of a single native token, which may be subject to volatility that could lead to 'death spiral' effects.

Instead, dual staking enhances robustness by coupling the network token with an additional token such as ETH that has lower volatility, deeper liquidity, and more resilience.

Building on this idea further, Swell L2 AVS’s will be secured by a diversified basket of assets comprising the native gas token, SWELL, along with Swell’s liquid staking tokens rswETH and swBTC.

Securing Swell L2 with SWELL

Using SWELL — in addition to rswETH and swBTC — to secure and scale the EigenLayer AVS's powering Swell L2, will help the network overcome the centralization, security and trust issues that undermine other L2s.
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And, it will drive a unique flywheel of restaking rewards for SWELL stakers securing the Swell L2 AVS's. These include:

Data Availability: EigenDA

EigenDA addresses the blockchain scaling bottleneck around data availability by enabling rollups to put their transaction data offchain and verify it with certificates posted to Ethereum. This will decouple the throughput of Swell L2 from Ethereum, leading to reliable and low cost transactions.

State Validation: AltLayer MACH

AtlLayer’s MACH is a fast-finality AVS that addresses rollups’ typically slow finality times. It ensures rapid transaction confirmation and maintains crypto-economic security to counteract malicious participants.
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Decentralized Sequencing: Radius

Centralized sequencers, as used by most L2s, hold a single monopoly over the outcome of any block. This can pose risks including transaction censorship, downtime, and harmful MEV extraction. Radius resolves this with a shared sequencing layer built as an AVS, which takes a trust-minimized approach to ordering transactions.

Get ready for rSWELL!

By securing these AVS’s, SWELL stakers will capture yield generated by activity on Swell L2.

And, with liquid restaking token rSWELL, they can capture this value while still being able to use the liquidity elsewhere in DeFi. 

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