Swell pauses swETH and rswETH deposits and withdrawals; contract exchange rate abnormally higher than market price

On October 24 that, according to Unchained, Ethereum liquid staking protocol Swell has suspended deposit and withdrawal services for swETH and rswETH pending corrections to the net asset value (NAV) and exchange rates of the two tokens. The team has not yet announced a specific resumption time and confirmed that user funds are secure.

Data shows that the exchange rates reported by the swETH and rswETH contracts are approximately 1.203 ETH and 1.138 ETH respectively, about 6% and 5% higher than previous normal levels. Meanwhile, the actual trading prices of the two tokens on decentralized exchanges are around 1.089 WETH and 1.029 WETH, significantly lower than the redemption values indicated by the contracts.

Previously, on-chain analyst Spreek suspected that the management keys for the relevant tokens had been compromised and discovered a malicious upgrade contract that could affect approximately 2,500 ETH, though no formal execution of such an upgrade has been detected. Swell stated that the ETH in the relevant deposit and withdrawal contracts has not been transferred out, and the specific cause of the incident is currently under investigation.