With the launch of Barracuda, stakers can now unstake swETH for ETH through the Swell app at the primary market rate.
The upgrade streamlines the experience of swapping out of swETH, and provides assurance that stakers holding swETH can always get back what they staked and the accrued rewards — without needing to rely on the secondary market. This lends further stability to swETH as one of the most popular and integrated LSTs in DeFi, the second-largest restaked LST on Eigenlayer, and the only LST backed by Chainlink Proof of Reserves.
Barracuda passed through a stringent security process before release, with all code fully audited by Sigma Prime, Cyfrin, and Hexens.
Swapping swETH for rswETH
In the coming weeks, the next upgrade for rswETH will enable you to directly restake swETH in exchange for rswETH. This will provide a quick and economical way to move between swETH and rswETH, reducing gas costs and removing reliance on the secondary market.
Instead of making multiple costly transactions by withdrawing the swETH deposited in EigenLayer, unstaking it, and then restaking the ETH, rswETH v2 will enable you to switch between the assets in two gas-efficient steps: simply withdraw from EigenLayer and then restake the swETH for rswETH.
How to unstake swETH
1. Request to unstake
Click on the arrow under ‘Stake’ in the Swell app and input the amount you wish to withdraw.
2. Receive an unstake NFT
Each withdrawal request is represented by a NFT, which is automatically minted for you when you make the request.
3. Wait for 1-5 days
The time taken to unstake the underlying ETH from validators is usually 1-5 days, but can be up to 7 days depending on the amount and the total number of requests being processed.
Note that withdrawal time depends not only on the validator exit queue but also on the validator sweep state. Sweeping delays are incurred while waiting for the validator to be swept for exits, and in the worst case this can take up to 8.5 days (as of 3/12/24).
4. Claim your ETH
The NFT is automatically burned when you claim your ETH.
FAQ
How can I swap swETH to rswETH?
Up next, rswETH v2 will enable you to save on gas by directly restaking swETH in exchange for rswETH.
This upgrade is expected in the next few weeks, and will condense the multi-step process of unstaking swETH deposited in EigenLayer and restaking the ETH for swETH into two simple steps: withdrawing from eigenlayer and restaking swETH for rswETH.
What are withdrawals?
Withdrawals are the process of unstaking ETH from Swell DAO validators and returning it to stakers.
How long does it take to withdraw?
Unstaking takes at least 24 hours in the best case, and a week or longer in the worst case.
The exact duration largely depends on:
- Beacon chain exit queue time
- Demand for unstaking in Swell
- Recent slashing events
- Validator sweep state
Sweeping delays are incurred while waiting for the validator to be swept for exits, which in the worst case can take up to 8.5 days (as of 3/12/24).
Can I cancel my withdrawal once I have requested it?
Once in the queue, you cannot exit. You can only withdraw your ETH once the validator exit is complete.
Is there a fee for withdrawal?
Swell doesn't charge a fee for withdrawals, but withdrawals are subject to Ethereum gas fees.
What is the minimum withdrawal amount?
0.005 ETH or more must be unstaked in each withdrawal transaction.
What is the maximum withdrawal amount?
Each withdrawal is capped at 500 ETH. The number of withdrawals is uncapped.
What is the swEXIT NFT?
The swEXIT NFT represents your withdrawal request.
Can I transfer or sell my swEXIT NFT?
Yes, the swEXIT NFT can be transferred or sold, enabling the new owner to redeem the unstaked ETH. Note that transferring or selling the NFT will result in the loss of your ability to claim your staked ETH.
Got questions about withdrawals? Ask the team in the Swell Discord!
