Babies are prone to startle during their sleep hence swaddling is one of the technique that helps to restrain them from momentary movements that would wake them up from sleep.
My mum used to swaddle Nadra snugly using muslin cloth when she was a newborn to keep her warm; also hoping to prevent over stimulation. She always managed to wriggle herself out halfway through her sleep. We tried to swaddle her again, however, she will cry out of frustration.
We still do swaddle her in muslin cloth, less tightly, but only in the day. She is slowly differentiating between night and day now, so if she were to break free of her swaddle and woke up, it is still okay.
At night, we put her on Love to Swaddle Up.
The material is slightly snug but not too restrictive to allow her to move. It allows her to be swaddled with the arms bent, brought to midline, and accessible to her face. This allows her to self-console by bringing hands to face and mouth. She slept longer and even if she wake up halfway, she managed to fall back to sleep on her own. Best of all, she no longer wake up at night to feed.
The only downside, a very wet cloth that smell funky. (Sucking her fingers is self-soothing for her).