DeFi moves fast. Really fast. With this speed comes innovation that constantly pushes us to test new heights. Amidst all these advancements is a narrative that opens the gateway to Ethereum’s next big DeFi play– Liquid Restaking.
Kelp is a collective DAO designed to unlock liquidity, DeFi and higher rewards for restaked assets. This is coupled with the convenience of a single liquid restaked token for accepted LSTs. rsETH will be further developed under the Kelp brand. More details to follow soon.
Before we get to how Kelp will work, let’s understand restaking a little better.
What is restaking?
Restaking enables Ethereum stakers to offer their already staked Ethereum as economic security to multiple services. To do that, Ethereum stakers deposit their staked ETH as security collateral and get rewarded for their effort.
What is EigenLayer?
EigenLayer is a protocol built on Ethereum that has popularized restaking — a new crypto-economic security primitive — allowing ETH stakers to reuse their ETH.
What opportunities does restaking present?
Restaking brings forth opportunities across different groups of participants.
- Economic security for protocols
- Easy bootstrapping for protocols
- Improved capital efficiency for stakers
What are the potential challenges of restaking?
While the opportunities for restaking are manifold, its challenges also must be addressed.
- Complex reward structures
- High gas fees
- Liquidity constraints
- Discovering suitable node operators
- Opportunity cost of choosing between restaking and DeFi opportunities
Enter liquid restaking — a transformative DeFi concept that enhances the flexibility and liquidity of staked assets while preserving rewards and security.
How does rsETH help solve these?
rsETH is a single liquid restaked token that can be minted against LSTs accepted as collateral on EigenLayer. rsETH allows for fractional ownership of staked assets, ensures easy access to both restaking and DeFi, and leverages composability in DeFi. It also addresses issues like complex reward structures and high gas fees.
What’s next?
With rsETH already on testnet, Kelp’s journey is just getting started. Here are some key developments in the pipeline:
- AVS & operator partnerships
Kelp is set to establish strategic partnerships to enhance its ecosystem and bring new opportunities to its users. - Audits
To ensure the highest standards of security, Kelp will undergo comprehensive audits with tier 1 security firms to protect the interests of its users. - Mainnet launch
Stay tuned for the mainnet launch, where features and capabilities of Kelp’s liquid restaking platform will come to life. In the meantime, we’ll take you behind the scenes of Kelp’s name and philosophy.
With the world of restaking rapidly evolving, Kelp is all set to lead and innovate. We’re building rsETH for everyone; for the promise of economic freedom and the true spirit of DeFi. We’re excited to set sail together and look forward to improving rsETH with your support.
For any questions or feedback, you can find us on Twitter (now X), Telegram, and Discord. Alternatively, you can write to us at hello@kelpdao.xyz and receive updates by subscribing to our newsletter.
Anchors aweigh!
