There are a few problems here as I see it.
Most of the liquidity is out of range and not earning any additional SWISE rewards. Most of the rewards are going to a few accounts now who are LPing in the new price tick. Additionally, the calculation of SWISE rewards means that they are getting a huge APR for LPing on this single tick range.
Meanwhile, SETH2 still trades at a decent premium to the other staked ETH derivatives. For example, stETH is trading around .945 ETH. However, since stETH is a rebasing token, absent the current market dynamics (and post merge/unlock), stETH would be trading well above 1 ETH. SETH2 is now at .962, but since it is not rebasing and rewards are distributed to RETH2, SETH2 should still be trading lower if it was in line with the rest of the staked ETH tokens (somewhere in the .9-.93 range based on my calculations). So there is still quite a bit of chance for more downside in my opinion. Not to mention if the market continues to deteriorate and more liquidity is removed, stETH and the rest could easily trade lower. Some analysts have suggested the discount should be somewhere more around 20% and some staked ETH derivatives have traded this low recently.
So while there is some hope that SETH2 and the others trade back to par with ETH, it is more likely that this discount persists and even increases.
Further, anyone who has set a larger, conservative range, seems to be getting next to no SWISE rewards. For example, adding new positions with a range between .8-1 SETH2/ETH has an APR lower than 10% while LPing in the current tick is getting over 100% apr.
This means that all new liquidity will go to the main tick where price is currently at, and add to the problem where there is little liquidity below the current price, making it easy to repeat the same play with a large sell of SETH2 in to the pool. A 500 SETH2 sell in to the current liquidity would push the price out of the current tick and in to one even lower for example. This is only 10% of the liquidity sitting at the previously suggested range, and is therefore a distinct possibility (along with any pressure on the markets that lead to an increase in the staked ETH discount).
Instead of giving all SWISE rewards to a single tick area, it likely makes more sense to incentivize a larger range and more evenly distribute these rewards to all liquidity providers on the pair. This will reduce the rewards to the few actors that are taking advantage of the current system and also incentivize liquidity under the current price, which will help to further support the price of SETH2 and reduce further widening of the discount.
Therefore, I suggest that the LP rewards be distributed evenly between liquidity providers vs the current system of incentivizing liquidity in a narrow range. This reduces risk for LPs, reduces the payouts to a few accounts, and will help support the price of SETH2 in the long run.