Tron creator Justin Sun has dominated Swell L2, the liquid restaking protocol. According to blockchain data, Sun’s wallet transferred a record-breaking 120,000 eETH into the platform or Ethereum-based tokens pegged to it, representing 46% of all deposits.
Sun’s $376m injection into the market through this move highlights its rapid growth. Platforms like Swell L2 allow users to stake Ether and receive an equivalent amount of liquid tokens, such as eETH, which can be used in different DeFi apps for extra earnings.
However, this is not his first involvement with decentralized finance. Last year, he saved Curve Finance from liquidity crisis when he bought CRV tokens worth $2.3m and staked them heavily thus cementing his position as one of DeFi’s key players.
Nonetheless, while this is impressive, what Sun did on Swell L2 raises concerns about its future decentralization and governance models. Regulators and industry observers will likely keep a close eye on such large-scale deposits from influential figures in the crypto industry.
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