Swell Reopens swETH and rswETH Withdrawals Following Exchange Rate Reset

Liquid staking protocol Swell Network has lifted withdrawal pauses on its $swETH and $rswETH tokens following an exchange rate reset, according to a report from The Defiant ¹. The update comes as broader markets traded under cautious sentiment, with $ETH holding at $2,266 at the time of writing.

Alongside lifting redemptions, Swell announced a commitment to compensate users who deposited funds into the protocol at inflated exchange rates ¹. The protocol team stated that affected depositors would receive compensation within one week ¹. However, full functionality across the staking suite has not returned, as direct-deposit controls for both swETH and rswETH still show an active pause ¹.

Partial Functionality Resumed

The move allows token holders to resume withdrawals, but the continued suspension of deposit functions indicates that protocol operations remain only partially operational ¹. Swell's action follows broader security friction in the sector, as documented in prior coverage of Swell Network hot keys compromise, with the protocol now prioritizing exiting liquidity over incoming deposits ¹.

Under the current operational state, users who deposited at elevated rates await fulfillment of the pledged restitution process, which the protocol indicated should occur within the one-week timeline ¹. Meanwhile, direct deposits into both liquid staking derivative contracts remain unavailable until administrative controls are altered ¹.