SwellMicro-cap

Swell receives a B- risk grade (31/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — fast-growing restaking player, but double slashing exposure and an unproven L2 security model create layered risks that simpler staking protocols avoid An Ethereum restaking protocol offering rswETH (a liquid restaking token) and its own Layer 2 blockchain secured by restaked ETH. It holds $345M in deposits. Its B- grade reflects fast growth and a novel L2 design, offset by double slashing risk and an untested security model for the Layer 2.

The key risks identified for Swell are: (1) rswETH holders face double the slashing risk of regular stakers. You can be penalized by Ethereum AND by the EigenLayer services your ETH secures. A correlated failure could wipe out 10-15% of your deposit (2) The Swell Layer 2 uses restaked ETH for security instead of the proven fraud proofs or zero-knowledge proofs that other L2s use. This is a brand-new design with no track record during a crisis (3) rswETH is used as collateral across DeFi lending protocols. If it depegs due to slashing, cascading liquidations on Aave, Morpho, and others would deepen the depeg in a downward spiral

Swell scores 31/100 across eight risk dimensions: Mechanism Novelty: 4/15, Interaction Severity: 8/20, Oracle Surface: 3/10, Documentation Gaps: 2/10, Track Record: 2/15, Scale Exposure: 3/10, Regulatory Risk: 3/10, Vitality Risk: 6/10. The highest risk area is Vitality Risk at 6/10.

Among 26 rated Restaking protocols on Hindenrank, Swell ranks #2 by safety (lowest risk score = safest). Its 31/100 risk score and B- grade place it among the safer Restaking protocols.

Swell scores 2/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.