Lido excels at liquidity and composability because of its first-mover advantage and massive ecosystem. For example, its stETH token boasts a TVL exceeding $30B and is integrated as core DeFi collateral across Aave, MakerDAO, and Curve. This deep liquidity and established trust make it the default infrastructure layer for protocols seeking maximum capital efficiency and user familiarity.
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Comparisons
Lido vs Swell: Restaking & LST Innovation
A technical comparison for decision-makers evaluating the trade-offs between Lido's established stETH standard and Swell's integrated approach combining liquid staking with native restaking (EigenLayer) and Layer 2 strategies.
Chainscore © 2026
introduction
THE ANALYSIS
Introduction: The Staking Derivative Evolution
Lido and Swell represent two dominant, divergent paths in the evolution of liquid staking and restaking, forcing a critical architectural choice.
Swell takes a different approach by pioneering native restaking and a modular rollup ecosystem. Its strategy integrates EigenLayer's restaking primitives directly into its liquid staking token (LST), swETH, and is building a dedicated Layer 2, the Swell L2, powered by Polygon CDK and AltLayer. This results in a trade-off: less immediate liquidity than Lido, but a tightly integrated stack for protocols that prioritize native yield amplification and a dedicated chain for restaked assets.
The key trade-off: If your priority is maximizing capital efficiency and tapping into the deepest DeFi liquidity pools today, choose Lido. If you prioritize future-proofing with native restaking rewards (like EigenLayer points) and building on a chain natively optimized for staking derivatives, choose Swell.
tldr-summary
Lido vs Swell: Restaking & LST Innovation
TL;DR: Core Differentiators
Key strengths and trade-offs at a glance for CTOs evaluating liquid staking and restaking infrastructure.
01
Lido: Market Dominance & Composability
Established Liquidity: Commands ~$30B in TVL and a 70%+ market share in Ethereum liquid staking. This matters for protocols requiring deep, battle-tested liquidity for their stETH token across DeFi (Aave, Maker, Curve).
02
Lido: Multi-Chain Staking Standard
Protocol Agnosticism: Offers liquid staking tokens (LSTs) for Ethereum (stETH), Solana (stSOL), and Polygon (stMATIC). This matters for teams building cross-chain applications that need a consistent staking primitive.
03
Swell: Native Restaking Integration
EigenLayer-First Design: Swell's swETH is natively restakable, offering direct exposure to both Ethereum consensus rewards and EigenLayer AVS rewards. This matters for projects seeking maximum yield and early access to the restaking ecosystem.
04
Swell: Liquid Restaking Token (LRT) Pioneer
Specialized Yield Aggregation: Issues swETH and its Liquid Restaking Token (LRT), rswETH, which auto-compounds rewards from multiple AVSs. This matters for users and integrators who want a single, yield-optimized token without managing AVS selection.
05
Lido: Governance & Decentralization Focus
Progressive Decentralization: Governed by Lido DAO, with initiatives like the Simple DVT module to diversify node operators. This matters for protocols with stringent decentralization requirements and long-term regulatory considerations.
06
Swell: Gas Efficiency & User Experience
Optimized Minting/Redeeming: Lower gas costs for minting LSTs compared to some competitors and a streamlined interface for restaking. This matters for applications with high-frequency user interactions or targeting cost-sensitive markets.
HEAD-TO-HEAD COMPARISON
Feature Comparison: Lido vs Swell
Direct comparison of key metrics and features for Ethereum liquid staking and restaking.
| Metric | Lido (stETH) | Swell (swETH) |
|---|---|---|
Primary Focus | Liquid Staking | Liquid Restaking |
Ethereum TVL (USD) | $35.2B | $2.1B |
Supported Networks | Ethereum, Polygon, Solana, others | Ethereum |
Native Restaking Support (EigenLayer) | ||
LST Yield Source | Consensus + Execution Layer | Consensus + Execution + Restaking |
Protocol Fee | 10% of staking rewards | 10% of staking rewards |
Governance Token | LDO | SWELL |
pros-cons-a
Lido vs Swell: Restaking & LST Innovation
Lido (stETH): Pros and Cons
Key strengths and trade-offs at a glance for CTOs evaluating core infrastructure dependencies.
01
Lido: Unmatched Liquidity & Adoption
Dominant market share: $30B+ in TVL and 32% of all staked ETH. This matters for protocols requiring deep, stable liquidity pools for DeFi integrations (e.g., Aave, Curve). The stETH/ETH pair is the most liquid LST pairing.
02
Lido: Battle-Tested Security & Decentralization
Distributed validator network: Operated by 30+ professional node operators, reducing single-point-of-failure risk. This matters for architects prioritizing censorship resistance and a proven security model over 3+ years with no slashing incidents.
03
Swell: Native Restaking & EigenLayer Integration
Integrated restaking vaults: Swell's swETH can be natively restaked into EigenLayer for additional yield from AVSs. This matters for teams building actively validated services (AVSs) or users seeking a single-deposit point for dual staking/restaking rewards.
04
Swell: Modular LST & Innovation Focus
Purpose-built LSTs: Offers swETH (vanilla LST), rswETH (restaked), and swNFTs for non-custodial staking. This matters for protocols needing customizable staking derivatives and faster integration with emerging restaking ecosystems like EigenLayer and AltLayer.
05
Lido: Complexity & Governance Overhead
DAO governance lag: Major upgrades (e.g., V2 withdrawals) require lengthy Lido DAO votes. This matters for CTOs who need agile protocol upgrades and may be hindered by the slower pace of a large, decentralized governance process.
06
Swell: Lower Liquidity & Network Effects
Smaller DeFi footprint: ~$2B TVL limits initial integration depth. This matters for applications requiring immediate, massive liquidity; swETH has fewer native integrations on major DEXs and money markets compared to stETH.
pros-cons-b
LIDO vs SWELL
Swell (swETH): Pros and Cons
Key strengths and trade-offs at a glance for CTOs evaluating Liquid Staking Token (LST) and restaking strategies.
01
Lido's Dominant Scale & Liquidity
Largest market share: $30B+ in TVL across Ethereum, Solana, and Polygon. This translates to unparalleled liquidity for stETH on DEXs like Uniswap and Curve, and deep integration with DeFi protocols (Aave, MakerDAO). This matters for protocols requiring maximum capital efficiency and minimal slippage.
$30B+
TVL
~29%
ETH Staked
02
Swell's Native Restaking & Points
Integrated EigenLayer strategy: swETH is natively restaked, offering dual rewards from Ethereum consensus and EigenLayer Actively Validated Services (AVS). Combined with the Swell Points program, it creates a powerful incentive flywheel for early adopters. This matters for users and protocols seeking to maximize yield and accumulate potential airdrop eligibility.
Dual Rewards
Consensus + AVS
03
Lido's Centralization & Governance Risk
Node operator concentration: LidoDAO's permissioned set of ~30 operators presents a single point of failure and regulatory scrutiny risk. The governance token (LDO) has a high concentration among early investors. This matters for protocols prioritizing censorship resistance and long-term decentralization for compliance or ideological reasons.
04
Swell's Nascent Ecosystem & Complexity
Smaller liquidity footprint: ~$2B TVL means swETH has less depth on secondary markets compared to stETH. The restaking model introduces smart contract and slashing risks from EigenLayer AVSs. This matters for large-scale DeFi integrations where liquidity depth is critical and for teams wary of additional protocol dependencies.
~$2B
TVL
CHOOSE YOUR PRIORITY
Strategic Use Cases: When to Choose Which
Lido for DeFi
Verdict: The default choice for maximum liquidity and composability. Strengths: Lido's stETH is the most battle-tested and deeply integrated LST, with over $30B TVL. It's the primary collateral asset on Aave, MakerDAO, and Compound, enabling high-efficiency leverage loops. Its wstETH standard is the de facto wrapper for DeFi, supported by protocols like Uniswap, Balancer, and Curve. For builders requiring deep, stable liquidity and the widest range of integrations, Lido is the incumbent network effect.
Swell for DeFi
Verdict: A strategic choice for builders targeting the restaking and EigenLayer ecosystem. Strengths: Swell's swETH is natively a Liquid Restaking Token (LRT), accruing both Ethereum staking yield and EigenLayer restaking points/rewards. This makes it a powerful primitive for DeFi protocols looking to bootstrap TVL with higher yield potential. It integrates with EigenLayer AVSs like EigenDA, AltLayer, and Omni Network. Choose Swell to build applications that leverage restaking's dual-yield and the nascent AVS security marketplace.
verdict
THE ANALYSIS
Verdict: The Strategic Decision Framework
Choosing between Lido and Swell is a strategic decision between a dominant, battle-tested ecosystem and a nimble, innovation-focused challenger.
Lido excels at providing a deeply integrated, secure, and liquid foundation for DeFi because of its first-mover advantage and massive scale. For example, with over $30B in TVL and integrations across 100+ protocols like Aave, Curve, and MakerDAO, stETH is the de facto standard for composability. Its multi-client, non-custodial node operator set, audited by firms like Sigma Prime, provides institutional-grade security, making it the default choice for risk-averse treasury managers.
Swell takes a different approach by prioritizing modular innovation and native restaking yields. This results in a trade-off: while its ecosystem is smaller, it offers unique value accrual through its Swell Layer 2 vision and non-custodial vaults for EigenLayer and liquid restaking tokens (LRTs) like rswETH. Swell's strategy focuses on capturing the full restaking stack, offering higher potential yields for users willing to engage with newer, more complex primitives.
The key trade-off: If your priority is maximum liquidity, security, and DeFi composability today, choose Lido. Its stETH is the bedrock asset. If you prioritize early access to restaking innovation, higher potential yield aggregation, and alignment with a vertically integrated rollup future, choose Swell. Its roadmap is a strategic bet on the convergence of LSTs, LRTs, and Layer 2s.
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