Introducing earnETH: Effortless Yield Vault for ETH Assets

Just yesterday, Swell released earnETH, a new vault product designed to maximize returns for users holding ETH-based tokens. By depositing supported assets such as swETH, rswETH, WETH, wstETH, pxETH, and apxETH, users gain exposure to top-performing DeFi strategies without the hassle of manually navigating the market. This vault automatically allocates funds to the most promising protocols, offering a blend of high-yield opportunities and exclusive ecosystem rewards through the Swell L2 platform.

The earnETH vault goes beyond simple yield farming. It will integrate with multiple DeFi strategies such as Morpho, Pendle LPs, and PancakeSwap to generate risk-adjusted returns. Additionally, users earn a combination of Swell City campaign points (1.5x), Nucleus points (3x), and Black Pearls (3x). A smooth transition is planned—where any assets held in the vault will be migrated to the Swell L2 platform to ensure continuity in earning optimized yields.

With a flexible deposit-and-withdraw system, users can exit their positions anytime, although withdrawals are subject to a 7-day cooldown period and minor solver fees to cover gas costs. Fees are competitive, including a 1% platform fee and a 10% performance fee on vault yield. Built on Nucleus, a key yield infrastructure provider for Swell L2, earnETH provides a secure and audited experience, offering an innovative way to passively grow ETH assets while staying ahead of market trends.

As of this post, there is just under $325k in assets deposited into earnETH having just kicked off, with 4 underlying strategies powering this vault, and 100% of the deposited assets currently allocated to rswETH earning 3.2% APY.

Let’s dive into a tutorial on how to get started with earnETH…

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Before we get started, this is never a recommendation or endorsement to buy any token(s) mentioned, and here’s a few risks to consider:

• Smart contract risk in any underlying protocols including Swell rswETH

• Pool size and liquidity depth

• Front-end spoof attack on an app frontend

• An economic design exploit

• Colluding signers on any multisig

• Systemic risk across DeFi, including LRTs depegging

1. First, I connect my Ethereum Mainnet wallet to the Swell dApp here under Earn → Earn Vaults.

2. I can specify depositing any of the supported assets listed.

3. Lastly, I specify how much to deposit and follow the prompts to approve and deposit my assets and start earning with earnETH (2 transactions).

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