Justin Sun, the man behind Tron, has taken control of Swell L2, the liquid restaking protocol. Blockchain data indicates that 46% of all deposits, or a record-breaking 120,000 eETH, were transferred into the platform through Sun’s wallet or tokens linked to Ethereum.
This is not his first experience with decentralized finance, as was previously mentioned. His purchase of $2.3 million worth of CRV tokens and heavy staking of them last year prevented Curve Finance from experiencing a liquidity crisis, solidifying his place as one of DeFi’s major players.
Governance Concerns on Swell L2
Sun’s quick growth is demonstrated by this $376 million infusion into the market. Stake Ether to earn an equivalent amount of liquid token (eETH) that can be utilized in various DeFi apps for additional revenue on platforms like Swell L2.
However, despite its outstanding nature, Sun’s work on Swell L2 raises questions regarding its governance and decentralization models going forward.
Such substantial deposits from well-known personalities in the cryptocurrencycurrency world will probably be closely monitored by regulators and industry watchers.
Also Read: SUN.io Supports the HTX/TRX Network in Partnership with HTX DAO
