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.
When users restake through Kelp, they receive a derivative token (like rsETH) that represents their restaked assets. These derivative tokens can be used in various DeFi applications while the original assets continue earning staking rewards.
Their token, the 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.
This approach offers users flexibility and liquidity while still allowing them to participate in network validation and earn staking rewards. It has become a popular option for those looking to earn yield in the crypto space.
Past
Kelp was first introduced in November 2023 to build a liquid restaking protocol on Ethereum to unlock liquidity, DeFi, and higher rewards for restaked assets.
To mitigate the illiquidity and low usability of EigenLayer points, Kelp introduced the $KEP — Kelp Earned Points token, to bring liquidity to illiquid EigenLayer Points/ rewards. Users will now be able to transfer and trade their earned points and also participate in DeFi with $KEP. Simply put, all EigenLayer points earned by Kelp DAO are distributed proportionally to rsETH holders in the form of $KEP tokens.
Present
The protocol is one of the largest liquid restaking platforms, with $680 million in TVL. They focus on Ethereum more than 10 other EVM chains, offering liquid restaking for a big public.
Kelp’s restaked token, the rsETH, is widely integrated across the DeFi ecosystem, used in various lending, borrowing, yield farming protocols, and their own initiatives, like the Kelp Gain Vaults.
Kelp just launched the ‘Kelp Gain’ program, this initiative aims to enhance the earning potential for restakers and users by providing streamlined access to multiple Layer 2 (L2) airdrops through a single, diversified strategy.
Future
Kelp launched the ‘Kelp Gain Vaults program, this initiative aims to enhance the earning potential for restakers and users by providing streamlined access to multiple Layer 2 (L2) airdrops through a single, diversified strategy.
It’s likely they keep improving the current features and continue innovating on their restaking products, potentially offering new developments aside from the ‘Gain’ program, bringing more efficiency and options to LRTfi and to DeFi in general. As Ethereum undergoes further upgrades, their plans are to adapt and optimize its services accordingly.
Kelp may look into expanding interoperability across more EVM-compatible blockchain networks it supports. Enhancing community engagement in both governance and development is likely to stay a focus. There’s also potential for deeper integration of Kelp’s restaked tokens into various DeFi protocols and applications, such as Bracket. Ongoing efforts to increase security and safeguard user funds are anticipated, maintaining trust in the platform. Additionally, new offerings, like the ‘Gain’ program, could be introduced to further utilize its liquid restaking infrastructure.
Conclusion
Kelp DAO represents an innovative approach in DeFi, focusing on enhancing liquidity and rewards for restaked assets. Key aspects include:
Kelp operates as a DAO, leveraging community governance. The platform allows users to restake their assets while maintaining liquidity through derivative tokens. rsETH is Kelp’s flagship product — a liquid restaked token that can be minted against accepted Liquid Staking Tokens (LSTs) on EigenLayer. rsETH can be used across various DeFi applications, increasing the utility of staked assets.
Kelp aims to streamline complex reward structures and reduce gas fees associated with staking. rsETH enables fractional ownership of staked assets, potentially lowering barriers to entry. The system is designed to leverage DeFi composability, potentially leading to more efficient and diverse financial products.
Kelp DAO’s approach could significantly impact how users interact with staked assets in the DeFi ecosystem, potentially unlocking new value and opportunities in the space. However, as with all DeFi projects, users should conduct thorough research and understand the associated risks before participating.
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