Swell, an Ethereum staking initiative, has unveiled “swBTC,” a new liquid restaking token (LRT) designed to offer yield opportunities for Bitcoin holders through EigenLayer and competing restaking platforms Symbiotic and Karak.
The swBTC token, which is backed 1:1 by wrapped Bitcoin (wBTC), allows users to engage with Ethereum’s network while maintaining exposure to Bitcoin’s value. Users who deposit their wBTC will receive swBTC in return, with yield generation expected to commence by mid-September, as revealed in a recent announcement shared with CoinDesk.
Restaking involves repurposing ether (ETH) tokens, initially staked for Ethereum’s security, to support other blockchain networks and protocols. Swell’s new offering aims to broaden the utility of restaking, enabling Bitcoin users to leverage both Bitcoin’s value and yield opportunities across diverse blockchain ecosystems.
“Swell’s foundation is rooted in Ethereum, but we are optimistic about the potential of restaking throughout the blockchain space,” stated Swell founder Daniel Dizon. “Our launch of a liquid restaking token for Bitcoin is designed to unlock up to $1 trillion of Bitcoin liquidity for decentralized finance (DeFi) applications.”
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