Introduction

What is Kelp DAO?

Kelp DAO was founded by Amitej G and Dheeraj B, who have previously founded Stader Labs, a multichain liquid staking platform with $500M+ in TVL. The team is focused on building Liquid Restaking Solutions for public blockchain networks.

The Kelp DAO team is currently building an LRT solution, rsETH, on EigenLayer for Ethereum.

What is rsETH?

rsETH is a Liquid Restaked Token (LRT) issued by Kelp DAO designed to offer liquidity to illiquid assets deposited into restaking platforms, such as EigenLayer. It aims to address the risks and challenges posed by the current offering of restaking

How rsETH works?

  1. Restakers stake their LST to mint rsETH tokens indicating fractional ownership of the underlying assets

  2. rsETH contracts distribute the deposited tokens into different Node Operators that operate with the Kelp DAO

  3. Rewards accrue from the various services to the rsETH contracts. The price of rsETH token assumes the underlying price of the various rewards and staked tokens

  4. Restakers can swap their rsETH tokens for other tokens on AMMs for instant liquidity or choose to redeem underlying assets through rsETH contracts

  5. Restakers can further leverage their rsETH tokens in DeFi

What are the benefits of rsETH?

For Restakers:

  1. Provide liquidity to the restaked ETH/LST

  2. Save the effort in identifying the right services and validators

  3. Help manage rewards that come in with Restaking

For AVSs:

  1. Save effort to identify and partner with Operators

  2. Save effort to bootstrap security

  3. Help reduce emissions on rewards

For Operators:

  1. Save the effort in identifying the right services

  2. Reduce the effort to get restakers and restaked assets

  3. Help manage rewards that come in with Restaking

What are the fees charged for rsETH?

At present, Kelp DAO charges a 10% fee on the rewards earned on the ETH deposits. No fee is charged on LST deposits.

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