Swell has paused deposits and withdrawals for swETH and rswETH. And the reason deserves attention. ⚠️
The Ethereum staking protocol is dealing with unusual exchange rates reported by its smart contracts.
On October 23, those contracts showed roughly 1.203 ETH per swETH and 1.138 ETH per rswETH, around 6% and 5% above earlier readings considered reliable.
These are contract accounting rates, not market prices.
These rates help determine how much ETH the tokens represent. If the accounting is wrong, deposits and withdrawals could be processed at incorrect values.
Swell says it needs to correct the figures before normal operations can resume.
There is also a security concern. An on-chain analyst flagged suspicious upgrade contracts capable of affecting roughly 2,500 ETH and a possible compromise of administrator keys. The analyst reported that those contracts had not been queued through Swell's multisig. But the cause has not been confirmed, and the roughly 2,500 ETH identified as potentially at risk is not a confirmed loss.
Swell previously reported that no ETH had left the affected contracts and said it was investigating with security partners.
For now, deposits and withdrawals remain paused, with no announced reopening time.
The key question is whether Swell can establish what caused the abnormal rates and restore accurate accounting before reopening.
The Ethereum staking protocol is dealing with unusual exchange rates reported by its smart contracts.
On October 23, those contracts showed roughly 1.203 ETH per swETH and 1.138 ETH per rswETH, around 6% and 5% above earlier readings considered reliable.
These are contract accounting rates, not market prices.
These rates help determine how much ETH the tokens represent. If the accounting is wrong, deposits and withdrawals could be processed at incorrect values.
Swell says it needs to correct the figures before normal operations can resume.
There is also a security concern. An on-chain analyst flagged suspicious upgrade contracts capable of affecting roughly 2,500 ETH and a possible compromise of administrator keys. The analyst reported that those contracts had not been queued through Swell's multisig. But the cause has not been confirmed, and the roughly 2,500 ETH identified as potentially at risk is not a confirmed loss.
Swell previously reported that no ETH had left the affected contracts and said it was investigating with security partners.
For now, deposits and withdrawals remain paused, with no announced reopening time.
The key question is whether Swell can establish what caused the abnormal rates and restore accurate accounting before reopening.
