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- The Swell team chose Chainlink’s CCIP due to its proven reliability in cross-chain solutions thus enabling mainstream adoption of swETH used in facilitating liquid staking.
- The Swell protocol has over $124 million in total value locked (TVL), which has grown exponentially since the Shapella upgrade that enabled the withdrawal of staked Ether.
Swell network, a non-custodial liquid staking protocol on the Ethereum (ETH) ecosystem, has announced a strategic partnership with the Chainlink (LINK) network to help in the cross-chain solution. According to the announcement, Swell protocol has integrated with Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to help enable secure cross-chain interoperability across the Ethereum network and the leading layer two (L2) scaling solution Arbitrum (ARB).
Through the integration with Chainlink’s CCIP, the Swell protocol has significantly upgraded its cross-chain token transfer mechanism from LayerZero’s OFT standard. Moreover, Chainlink’s CCIP has been tested by the vast adoption by other industry players seeking to enable seamless cross-chain asset solutions. Daniel Dizon, Swell Founder, noted;
We’re excited to continue our longstanding collaboration with Chainlink. At Swell, the community is excited to be integrating the most secure, reliable, and scalable cross-chain solution, Chainlink CCIP. By underpinning our liquid staking protocol, CCIP can help accelerate the adoption of swETH across the wider cross-chain economy,
Worth noting that the Swell network has been using Chainlink’s products in the past to help provide reliable liquid staking services. For instance, the Swell network has been using Chainlink Proof of Reserve, which has been providing investors with reliable on-chain data on swETH reserves and the Ether backings to ensure the highest transparency. As a result, the decision to integrate with CCIP was not a difficult one for the Swell team.
.@swellnetworkio is integrating #Chainlink CCIP on @arbitrum and @ethereum to help power highly secure cross-chain token transfers for its liquid staking protocol.
Why Swell is upgrading to exclusively using the cross-chain standard👇https://t.co/iZDTvneSRh https://t.co/7ztfNXXSqx
— Chainlink (@chainlink) December 2, 2023
Chainlink’s CCIP To Revolutionize Swell’s Liquid Staking
The Chainlink’s CCIP technology has attracted notable web3 investors seeking to scale securely like the ANZ Bank which has been using the technology to cross-chain tokenized assets. As of this report, Chainlink’s CCIP supports top-rated blockchains including Binance Smart Chain, Avalanche, Ethereum, Polygon, Coinbase-backed Base network, and Optimism mainnet. Web3 developers can integrate with Chainlink’s CCIP to reach out to more crypto users securely.
Moreover, Chainlink’s CCIP has secured tens of billions of dollars through smart contracts, whereby the network has enabled more than $8 trillion in on-chain transactions.
The Swell network liquid staking users can now seamlessly transfer assets between the Ethereum network and the Arbitrum scaling solution, which offers high throughput with small gas fees. As a result, the Swell protocol can compete fiercely with other DeFi protocols offering liquid staking including Lido (LDO), Rocket Pool, and Binance staked ETH.
Market Implications
The integration of the Swell protocol to the Chainlink network is expected to have a long-standing impact on the LINK price action. Already, the announcement is fuel to the ongoing LINK bullish outlook, with the altcoin up about 120 percent YTD to trade around $16.04 on Monday.
Meanwhile, the Swell protocol will benefit from more liquid staking customers in the future as the network has not yet launched its governance token dubbed SWELL.
