Swell Network excels at providing a pure, high-yield liquid staking token (LST) by focusing exclusively on Ethereum consensus-layer rewards. Its swETH is a canonical LST, offering a predictable yield from validator operations. For example, Swell has secured over $4.5B in TVL by optimizing for this single-purpose model, making it a streamlined choice for users and protocols seeking direct staking exposure without additional complexity.
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Comparisons
Swell Network vs Kelp DAO: Liquid Staking vs Restaking
A technical analysis comparing Swell Network's focused liquid staking model against Kelp DAO's restaking-centric platform. We evaluate core architecture, yield strategies, risk profiles, and optimal user scenarios for CTOs and protocol architects.
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introduction
THE ANALYSIS
Introduction: Core Architectural Divergence
Swell Network and Kelp DAO represent two distinct evolutionary paths for Ethereum staking, built on fundamentally different risk-reward architectures.
Kelp DAO takes a different approach by leveraging EigenLayer's restaking primitive. Its rsETH is a Liquid Restaking Token (LRT), which bundles native ETH staking rewards with additional yield from securing Actively Validated Services (AVSs) like AltLayer and EigenDA. This results in a higher potential yield but introduces smart contract and slashing risks beyond the Ethereum consensus layer, representing a clear trade-off between simplicity and maximized returns.
The key trade-off: If your priority is capital efficiency and maximizing yield through Ethereum's security reuse, choose Kelp DAO and its rsETH. If you prioritize minimizing protocol risk and maintaining a direct, predictable staking derivative, choose Swell Network and its swETH. Your choice hinges on whether you view restaking as a strategic advantage or an unnecessary complication.
tldr-summary
Swell Network vs Kelp DAO
TL;DR: Key Differentiators
Core architectural and strategic trade-offs between a dedicated liquid staking protocol and a restaking aggregator.
01
Swell: Superior Capital Efficiency
Direct LST Minting: Swell mints its own swETH, capturing 100% of the staking rewards and protocol fees for its ecosystem. This creates a stronger flywheel for its native token (SWELL) and treasury. This matters for protocols seeking a self-sustaining LST with deep DeFi integrations.
02
Swell: Focused Product Suite
Dedicated Liquid Staking Stack: Core offering is swETH, complemented by a vault layer for yield strategies. This singular focus allows for optimized security and user experience around a primary asset. This matters for users and integrators who want a simple, battle-tested LST without restaking complexity.
03
Kelp DAO: Multi-Asset Restaking
Aggregator Model: Kelp doesn't mint its own LST. Instead, it restakes existing major LSTs like stETH, rETH, and cbETH into EigenLayer, creating a unified restaked position (rsETH). This matters for users holding diverse LST portfolios who want to maximize restaking rewards without consolidating into one asset.
04
Kelp DAO: Risk Diversification
Inherent Diversification: By restaking multiple underlying LSTs (Lido, Rocket Pool, Coinbase), Kelp mitigates the smart contract and slashing risk associated with any single provider. This matters for institutional actors and risk-averse stakers building a robust, multi-provider restaking strategy.
LIQUID STAKING VS RESTAKING
Feature Comparison: Swell Network vs Kelp DAO
Direct comparison of core architecture, yields, and integrations for protocol architects.
| Metric | Swell Network | Kelp DAO |
|---|---|---|
Primary Function | Native Liquid Staking | Liquid Restaking |
Underlying Asset | Ethereum (ETH) | Liquid Staking Tokens (LSTs) |
Native Yield Source | Ethereum Consensus & Execution | EigenLayer AVS Rewards |
Current TVL (USD) | $2.1B | $1.1B |
Native Token | SWELL | Kelp Miles (Points) |
Supports LST Restaking | ||
Integrated with EigenLayer |
pros-cons-a
LIQUID STAKING VS RESTAKING
Swell Network vs Kelp DAO
A technical breakdown of two leading Ethereum yield strategies. Swell focuses on native liquid staking, while Kelp DAO specializes in restaking via EigenLayer. Choose based on your protocol's risk profile and yield objectives.
01
Choose Swell for Pure Staking Yield
Direct ETH staking exposure: Swell mints swETH against staked ETH, offering a predictable yield (~3-4% APY) derived solely from Ethereum consensus and MEV. This matters for protocols seeking a simple, low-complexity yield base layer without additional smart contract or slashing risks from restaking modules.
~3.5%
Base APY
$1.8B+
swETH TVL
02
Choose Kelp DAO for Maximized Restaking Rewards
EigenLayer AVS reward aggregation: Kelp's rsETH captures yield from both Ethereum staking and rewards from multiple Actively Validated Services (AVSs) like EigenDA and AltLayer. This matters for protocols and users willing to accept higher smart contract/slashing risk for potentially double-digit APY from nascent Ethereum middleware.
7-15%+
Target APY
$900M+
rsETH TVL
pros-cons-b
SWELL NETWORK VS KELP DAO
Kelp DAO: Pros and Cons
Key strengths and trade-offs at a glance for two leading liquid restaking protocols.
01
Swell Network: Strength
Dual-token yield strategy: Offers both rswETH (EigenLayer restaking) and swETH (native liquid staking). This provides a single-deposit access point to both base staking yield and restaking points/airdrops, simplifying portfolio management for users seeking maximum airdrop exposure.
02
Swell Network: Strength
Established DeFi integration & TVL dominance: With over $3.8B in TVL, Swell's liquid staking token (swETH) has deep liquidity and is integrated across major DEXs (Uniswap, Balancer) and lending markets (Aave, Compound). This ensures superior capital efficiency for yield strategies compared to newer entrants.
03
Swell Network: Drawback
Complex points ecosystem: The "Swell Voyage" airdrop campaign, while lucrative, creates complexity. Users must manage multiple point systems (Pearls, EigenLayer Points) and adhere to specific lock-up terms to maximize rewards, which can be opaque and time-consuming to optimize.
04
Kelp DAO: Strength
Multi-chain restaking primitives: Kelp issues rsETH natively on Ethereum, but is built for cross-chain expansion (Arbitrum, Polygon zkEVM). This architecture is superior for protocols needing canonical liquid restaking tokens on L2s to secure AVSs outside Ethereum's high-fee environment.
05
Kelp DAO: Strength
Mile-high unified rewards: Kelp's "Kelp Miles" program consolidates EigenLayer Points and Kelp Miles into a single, trackable metric. This reduces user friction and provides a clearer incentive dashboard compared to managing disparate point systems, appealing to restaking maximizers.
06
Kelp DAO: Drawback
Smaller ecosystem & nascent integrations: With ~$1B in TVL, Kelp's rsETH has less entrenched DeFi liquidity than market leaders. While growing, integrations with top-tier money markets and yield aggregators are fewer, which can limit immediate capital efficiency for large holders.
CHOOSE YOUR PRIORITY
Decision Framework: When to Choose Which
Swell Network for DeFi Yield\nVerdict: The simpler, foundational yield play.\nStrengths: Swell provides direct exposure to Ethereum staking yield (~3-4% APR) through its liquid staking token, swETH. This yield is relatively stable and predictable, backed by Ethereum's consensus layer. swETH integrates seamlessly across major DeFi protocols like Aave, Curve, and Balancer for additional yield stacking. Ideal for users prioritizing a straightforward, lower-risk yield component within a broader DeFi portfolio.\nConsiderations: Yield is limited to base Ethereum staking rewards plus DeFi farming on the LST.\n\n### Kelp DAO for DeFi Yield\nVerdict: The complex, high-potential yield optimizer.\nStrengths: Kelp's rsETH captures Ethereum staking yield + EigenLayer restaking points + Kelp Miles + potential AVS rewards. This multi-layered reward system can significantly boost APR, especially during incentive programs. rsETH can be deployed in DeFi (e.g., lending on MarginFi, providing liquidity) to compound returns. The primary draw is the speculative upside from early EigenLayer AVS allocations and token airdrops.\nConsiderations: Yield is more variable and speculative. Smart contract and slashing risks are compounded through the restaking middleware.
SWELL VS KELP DAO
Technical Deep Dive: Risk and Mechanism Design
This section analyzes the core technical trade-offs between Swell's liquid staking and Kelp DAO's restaking, focusing on risk profiles, yield mechanics, and protocol dependencies for architects and CTOs.
Kelp DAO generally offers higher potential yield through restaking. This is achieved by compounding staking rewards from EigenLayer with additional rewards from Actively Validated Services (AVSs). Swell's swETH provides base Ethereum staking yield (currently ~3-4%) plus a DeFi boost from its native liquidity pool. Kelp's rsETH captures that same base yield plus additional AVS rewards, which can add 5-15%+ APY, but introduces smart contract and slashing risks from the AVSs themselves.
verdict
THE ANALYSIS
Final Verdict and Strategic Recommendation
A data-driven conclusion on choosing between Swell's liquid staking and Kelp DAO's restaking for your protocol's strategy.
Swell Network excels at providing a pure, high-yield liquid staking token (LST) with deep DeFi integration. Its swETH token is a foundational asset for yield strategies across major protocols like Aave, Curve, and Balancer, boasting over $1.7B in TVL. This makes it the superior choice for protocols seeking a stable, composable staking derivative to use as collateral or a liquidity base layer without the complexity of EigenLayer's slashing risks.
Kelp DAO takes a different approach by minting a Liquid Restaking Token (LRT), rsETH, which captures additional yield from Actively Validated Services (AVSs) on EigenLayer. This results in a higher potential yield (often 1-3%+ above base staking) but introduces smart contract and slashing risk from the restaking middleware layer. Its strategy is optimized for protocols and users whose primary goal is maximizing yield through Ethereum's nascent restaking economy.
The key trade-off: If your priority is DeFi composability and capital efficiency with a battle-tested LST, choose Swell Network. If you prioritize maximizing speculative yield and are willing to accept the additional smart contract and slashing risks of early-stage restaking, choose Kelp DAO. For most CTOs building stable financial primitives, Swell's simplicity and integration depth are strategic; for those building yield-aggregation or risk-tolerant products, Kelp's restaking exposure is the differentiator.
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