How to do your Swell taxes with Koinly
Swell is a decentralized liquid restaking protocol that lets users earn rewards on staked assets while retaining liquidity. But if you have Swell transactions, you may have a tax bill. Koinly can help. Simply import your data, and Koinly will do the rest. Here's how.
FAQs
What is Swell?
Swell is a decentralized protocol offering both liquid staking and liquid restaking solutions. Users can stake ETH to receive swETH, a Liquid Staking Token (LST) that accrues staking rewards and integrates with various DeFi platforms. For enhanced yield opportunities, Swell offers rswETH, a native Liquid Restaking Token (LRT) that provides uncapped access to EigenLayer restaking rewards without locking liquidity. By holding rswETH, users earn staking yields, EigenLayer Restaked Points, and PearlsâSwellâs pre-token point system, redeemable for future $SWELL tokens. Both swETH and rswETH integrate with wider DeFi ecosystems, allowing users to maximize returns while maintaining asset flexibility.
Is Swell safe?
Swell Network has implemented a comprehensive security framework to safeguard its users and protocol. Since 2024, it has undergone 13 security audits by leading firms such as Sigma Prime, Cyfrin, Mixbytes, and Runtime Verification. Additionally, Swell offers a $250,000 bug bounty through Immunefi to incentivize the discovery and reporting of vulnerabilities. Despite these measures, users should be aware of the inherent risks associated with staking and restaking, including potential slashing penalties, validator downtime, and smart contract vulnerabilities. As with any DeFi platform, DYOR before investing.
Does Swell provide tax documents?
No, but you can use a crypto tax calculator like Koinly to figure out your tax liability from your Swell transactions and generate crypto tax reports. Simply add your Swell wallet address, and Koinly will automatically import your transaction data.
