KEP Token
Kelp DAO is one of the early pioneers of liquid restaking. Since December 2023, more than 18,000 restakers have deposited over 170,000 $ETH with Kelp minting $rsETH. Kelp accepts both native ETH and LSTs (ETHx, stETH, and sfrxETH) as collateral for which users can earn both, EigenLayer Points and Kelp Miles.
However, EigenLayer Points are non-liquid, non-ownable, non-transferable, and not interoperable. They cannot be used in DeFi nor can they be sent to someone else’s wallet address.
To address some of these challenges, Kelp is introducing $KEP.
About $KEP What is $KEP?
$KEP (Kelp Earned Points) is designed to be a game-changer in the restaking landscape. It is a token for an EigenLayer Point earned by Kelp where 1 $KEP = 1 EL Point. Users have complete autonomy to store, trade, and utilize their accrued EigenLayer Points as they see fit.
Restakers can claim their $KEP tokens on Kelp dApp starting 28th Feb. Each week, the restakers can claim $KEP for the EigenLayer Points they earned the previous week.
Why is Kelp DAO releasing $KEP?
As Kelp DAO, we want to create more on-chain opportunities for our users to leverage and benefit from the EigenLayer points. However, users are free to choose whether they want to claim $KEP and participate in DeFi or keep their EL points balance as is.
Is $KEP issued by EigenLayer?
$KEP is a token issued by Kelp DAO and is not issued by EigenLayer. $KEP is neither a governance token for Kelp DAO nor for EigenLayer. Simply put, $KEP is a token for EigenLayer Points that Kelp’s restaker earns.
Is $KEP associated with Kelp Miles?
No. $KEP only represents 1 EigenLayer point that Kelp’s restakers accrue.
$KEP Mechanics
How can I claim $KEP?
Please note that each $KEP is always equal to 1 EigenLayer Point as received by Kelp. Restakers can claim their $KEP token every week for the points earned the week prior. Claims will be available via Merkles.
I deposited my rsETH into Pendle / Uniswap / other DeFi opportunities. Will I still be able to claim $KEP?
Yes. Kelp DAO will keep track of your DeFi positions and will present you the option to claim the $KEP on the Kelp dApp.
What can I do with $KEP?
Restakers on Kelp can now completely own the EigenLayer points while transferring, trading, and choosing to interact with DeFi as they wish. Use cases that $KEP can enable immediately include:
Trading of KEP on AMMs
Provision liquidity on DEXs with $KEP <> rsETH, $KEP <> USDC pairs to earn kelp miles and swap fees
Many more DeFi opportunities are under development
Fees & Charges
Is there a fee for claiming $KEP?
Yes, we charge a 0.5% fee for claiming $KEP tokens. For example, if you were to receive 100 $KEP, you would receive 99.5 $KEP from a claim to your wallet. This fee will be utilized to incentivize restakers on KelpDAO.
Will Kelp charge any fee for future rewards or airdrops? No. Kelp will not charge any fee at the time of rewards or airdrops being distributed for holding $KEP (or EigenLayer points)
Future Rewards
How will I access future rewards if and when they are launched?
For any rewards issued by EigenLayer or other protocols for EigenLayer Points, $KEP holders will receive rewards in proportion to the EigenLayer Points their $KEP token holdings represent.
There are 2 possible scenarios in which rewards can be distributed -
Scenario 1: The rewards are provided to Kelp DAO to redistribute amongst its restakers. Kelp DAO will enable a mechanism to distribute rewards based on the criteria defined by the rewarding entity and proportionally distribute them to $KEP holders. As mentioned, Kelp DAO will redistribute 100% of all rewards it receives back to restakers.
Scenario 2: The rewarding entity collects data from Kelp DAO to make rewards available to Kelp’s restakers without passing the tokens to Kelp DAO. In this situation, the data that is required by the rewarding entity will be on-chain ($KEP token holdings), which will make the distribution extremely transparent..
Any unclaimed $KEP tokens will be attributed to the respective restakers. Kelp DAO will ensure that accurate and updated data is available at all times.
Please reach out to us for any further assistance with $KEP token.
Discord: https://discord.gg/wfDdcmbMjN
Twitter: https://twitter.com/KelpDAO
Telegram: https://t.me/KelpDAOxyz
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