What is Kelp DAO?
Kelp DAO was founded by Amitej G and Dheeraj B, who previously founded Stader Labs, a multichain liquid staking platform with a significant Total Value Locked (TVL) of over $350M. Their experience in liquid staking has influenced the development of Kelp DAO, which focuses on creating liquid restaking solutions for public blockchain networks.
Kelp DAO aims to simplify and enhance the liquid restaking process by developing innovative tools and tokens that provide users with better control and flexibility over their staked assets. The DAO is currently focused on building an LRT (Liquid Restaking Token) solution, particularly on EigenLayer for Ethereum, called rsETH.
Kelp DAO aims to simplify and enhance the liquid restaking process by developing innovative tools and tokens that provide users with better control and flexibility over their staked assets. The DAO is currently focused on building an LRT (Liquid Restaking Token) solution, particularly on EigenLayer for Ethereum, called rsETH.
Vision:
Kelp DAO is committed to advancing the liquid restaking landscape by providing more accessible and user-friendly tools that leverage the EigenLayer and broader DeFi ecosystem. Through its innovative solutions, Kelp DAO aims to drive widespread adoption and participation in decentralized finance, particularly in liquid restaking protocols.
Kelp DAO is committed to advancing the liquid restaking landscape by providing more accessible and user-friendly tools that leverage the EigenLayer and broader DeFi ecosystem. Through its innovative solutions, Kelp DAO aims to drive widespread adoption and participation in decentralized finance, particularly in liquid restaking protocols.
The Kelp DAO Architecture
Kelp DAO’s architecture is centered around its rsETH smart contracts, which are designed for secure and efficient management of liquid staking tokens (LSTs) within the EigenLayer ecosystem.
Key Modules:
- Restaker Deposits: Users deposit LSTs to mint rsETH.
- Node Delegator Contracts: Handles the delegation of assets to nodes.
- Strategies: Manages assets within various strategies to maximize returns.
- Unstake/Withdrawal: Facilitates the process of unstaking and withdrawing assets.
Supporting Modules:
- Registry: Keeps track of all operators, services, and assets.
- Oracle: Provides real-time asset prices for accurate minting and burning of rsETH.
- Governance: Implements successful proposals into the protocol.
- Reward Market: Optimizes non-ETH rewards through extra-yield strategies.
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How does Restaking Work on Kelp DAO?
Restaking on Kelp DAO involves users depositing native ETH or Liquid Staking Tokens (LSTs) like ETHx and stETH into the Kelp platform to mint rsETH, a liquid restaking token. This rsETH is then used within the EigenLayer ecosystem to secure Actively Validated Services (AVSs) and earn both staking and restaking rewards. Kelp DAO handles all technical complexities, including node operation and strategy management, allowing users to easily participate in EigenLayer’s restaking with minimal effort.
Overview of Kelp DAO’s Restaking/Liquid Restaking Token — 
rsETH
How rsETH Works
- Minting: Restakers deposit their liquid staking tokens (LSTs) into the Kelp DAO platform. In return, they mint rsETH tokens, which represent fractional ownership of the underlying staked assets.
- Distribution of Deposits: The deposited assets are distributed across various Node Operators managed by Kelp DAO. These operators handle the staking operations, securing different services and generating rewards through various restaking opportunities.
- Rewards Accrual: Rewards earned from staking and restaking services are funneled back into the rsETH contracts. The value of the rsETH token reflects both the underlying value of the staked tokens and the rewards accumulated from the restaking operations.
- Liquidity and Redemption: rsETH offers liquidity to restakers by allowing them to swap rsETH for other tokens on Automated Market Makers (AMMs), providing instant liquidity and redeem their underlying assets through the rsETH contracts for those preferring a direct claim on the original staked tokens.
- Leveraging in DeFi: Beyond liquidity and redemption, restakers can further leverage rsETH tokens within DeFi ecosystems, utilizing them for yield farming, collateral for loans, or other financial instruments, enhancing their capital efficiency.
Benefits of rsETH
- Liquidity for Staked Assets: Restakers are no longer locked into illiquid positions.
- Enhanced Rewards: Users can earn both staking and restaking rewards.
- DeFi Integration: rsETH can be used across decentralized finance protocols for additional yield opportunities.
