swETH (Swell ETH) is a liquid staking derivative token created by Swell Network. Here's an explanation of its key aspects: The basic concept is that when users stake their ETH through Swell Network, they receive swETH in return. This token represents their staked ETH position and any staking rewards being earned. Key features of swETH include: Liquid staking - Users can maintain liquidity while earning staking rewards, as swETH can be traded or used in DeFi applications while the underlying ETH remains staked 1:1 backing - Each swETH is backed by 1 ETH staked through the protocol Composability - swETH can be integrated into other DeFi protocols for lending, borrowing, or providing liquidity Automatic reward accrual - Staking rewards are reflected in the swETH:ETH exchange rate, which increases over time The protocol aims to contribute to Ethereum's decentralization by distributing staked ETH across multiple node operators rather than concentrating it with a few large providers.