[HIP-35] Add Swell Chain

Proposal ID: 4.2

I. Introduction

This proposal advocates for integrating SWELL L2, a restaking-powered Ethereum Layer 2 network, into Ulysses. SWELL L2 combines cutting-edge modular architecture, EigenLayer’s restaking security, and a vertically integrated value capture mechanism, making it a strategic addition to our cross-chain liquidity ecosystem.

Launching on SWELL L2 during its early growth phase positions Ulysses to capitalize on its rapidly expanding Total Value Locked (TVL) of over $892 million and its unique restaking-driven yield opportunities.

II. Background and Rationale

SWELL L2 distinguishes itself through:

1. Restaking Infrastructure: Built on AltLayer’s AVS stack, SWELL L2 leverages EigenLayer’s restaking mechanism to secure its network while enabling decentralized sequencing and fast finality (~10 seconds) .

2. Native Yield Layer: Gas fees are paid in rswETH (liquid restaked ETH), creating a reflexive flywheel where activity on SWELL L2 boosts EigenLayer’s security, attracts more AVS deployments, and amplifies yields for restakers .

3. Ecosystem Momentum: SWELL L2 pre-launch deposits surged to $10 billion in 28 days.

Benefits for Ulysses:

• Liquidity Growth: Tap into SWELL’s $286M swETH and $221M rswETH TVL, alongside its upcoming DeFi ecosystem .

• Yield Innovation: Leverage SWELL’s native restaking rewards and partnerships with EigenLayer AVSs (e.g., Drosera, Brevis) to offer users novel yield strategies .

• Early-Mover Advantage: Position Ulysses as a liquidity cornerstone for SWELL L2’s emerging DeFi landscape, including integrations with Tempest Vaults, Euler lending, and Hyperliquid DEX.

III. Proposal Details

This proposal seeks to enable cross-chain transfers between SWELL L2 and other Ulysses-supported chains.

IV. Implementation Plan

1. Technical Deployment:

• Deploy Ulysses smart contracts to Swell (done).

• Cast chain addition proposal .

• Publish gauge addition proposal.

• Enable chain in our dApp's UI.

2. Liquidity Bootstrapping (Weeks 5–8):

• Co-market new gauge opportunities with Swell.

V. Governance Considerations

Post-integration, as per the implementation plan, the community will propose and vote on Swell-specific liquidity gauges via governance.

VI. Conclusion

SWELL L2 represents a paradigm shift in Layer 2 design, merging restaking security, modular architecture, and reflexive tokenomics. By integrating SWELL L2, Ulysses gains access to a high-growth ecosystem poised to dominate Ethereum’s restaking narrative. We urge the community to approve this proposal and solidify our position as a leader in cross-chain innovation.