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Kelp DAO Restaked ETH (RSETH) is a Liquid Restaked Token (LRT) designed to provide liquidity and flexibility to illiquid assets deposited into restaking platforms, such as EigenLayer. It allows users to receive Ethereum staking and restaking rewards while retaining liquidity and the ability to participate in DeFi.
Kelp DAO Restaked ETH (RSETH) is a Liquid Restaked Token (LRT) designed to provide liquidity for assets deposited into restaking platforms, such as EigenLayer. Here's how it works:
Depositing LSDs: Users deposit various Liquid Staked Tokens (LSDs) into Kelp DAO contracts, and in return, RSETH tokens are minted, signifying fractional ownership of the underlying assets.
Restaking in EigenLayer: When EigenLayer opens its window for deposits, Kelp DAO transfers the tokens into their contracts, allowing users to earn points and rewards.
Reward Accumulation: Rewards accumulate to RSETH holders, who can then choose to swap their tokens for other assets for instant liquidity or redeem the underlying assets through RSETH contracts.
DeFi Usage: RSETH holders can also use their tokens in DeFi for leverage or loans, providing additional liquidity and flexibility.
Kelp Miles and EigenLayer Points: Kelp DAO uses a reward system called Kelp Miles to track points and deposits. Users can earn boosted miles for deposits made within specific timeframes, and these miles do not expire.
Referral Program: Kelp DAO has a referral program that rewards users for referring others to restake with them, providing additional incentives for participation.
Overall, RSETH enables users to earn rewards and maintain liquidity while participating in restaking protocols like EigenLayer.
To store Kelp DAO Restaked ETH (RSETH) tokens, the safest method is to use a "Cold Wallet," which is a wallet that is completely offline. This ensures maximum security for your tokens. There are two types of cold wallets: hardware wallets and paper wallets. Hardware wallets are physical devices that store your tokens, while paper wallets are physical documents containing your private keys. Both options provide secure offline storage for your RSETH tokens.
To buy Kelp DAO Restaked ETH (RSETH) tokens, follow these steps:
- Find Decentralized Exchanges (DEXs): Look for DEXs where RSETH is listed. Popular options include Uniswap V3 (Ethereum), Balancer V2, and Curve (Ethereum).
- Create and Set Up a DeFi Wallet: Set up a DeFi wallet to store and manage your RSETH tokens. Ensure the wallet supports Ethereum-based tokens.
- Fund Your Wallet: Fund your wallet with Ethereum (ETH) or other supported currencies to use for purchasing RSETH.
- Trade for RSETH: Use your funded wallet to trade for RSETH tokens on the chosen DEX. You can use the RSETH/WETH trading pair on Uniswap V3, for example.
- Add RSETH to MetaMask (Optional): If you use MetaMask, you can add RSETH to your wallet by importing the token contract address (0xa1290d69c65a6fe4df752f95823fae25cb99e5a7).
By following these steps, you can purchase and manage your Kelp DAO Restaked ETH (RSETH) tokens effectively.
Kelp DAO Restaked ETH (RSETH) was first introduced in November 2023 as a unified liquid restaked token generated from LSTs approved as collateral on EigenLayer. This token enables fractional ownership of staked assets and provides easy access to both restaking and DeFi opportunities while addressing issues like complex reward structures and high gas fees.
Kelp DAO Restaked ETH (RSETH) is a Liquid Restaked Token (LRT) designed to provide liquidity to illiquid assets deposited into restaking platforms like EigenLayer. Here is how it works:
Depositing LSDs: Restakers deposit their Liquid Staked Tokens (LSTs) such as ETHx, sfrxETH, and stETH into Kelp DAO's contracts. This deposit is used to mint rsETH tokens, which represent fractional ownership of the underlying assets.
Transferring to EigenLayer: When EigenLayer opens its window for deposits, Kelp DAO transfers the deposited tokens into EigenLayer's contracts. This process allows the tokens to earn points and rewards.
Accumulating Rewards: Rewards from EigenLayer accumulate to rsETH holders. These rewards can be in the form of points, tokens, or other protocol mechanics.
Liquidity Options: rsETH holders have two main options for liquidity:
- Swapping for Other Assets: They can swap their rsETH tokens for other assets on Automated Market Makers (AMMs) like Curve and Balancer, providing instant liquidity.
- Redeeming Underlying Assets: They can choose to redeem the underlying assets through rsETH contracts, effectively unlocking their staked assets.
DeFi Opportunities: rsETH holders can also leverage their tokens in decentralized finance (DeFi) for loans, borrowing, or other financial activities.
No Fees: Currently, Kelp DAO does not charge any fees on LST deposits, allowing users to deposit assets without incurring additional costs.
This process enhances the liquidity and accessibility of staked assets, making it easier for users to manage their rewards and participate in DeFi activities while maintaining the security and benefits of restaking.
Kelp DAO Restaked ETH (RSETH) offers several strengths:
Liquidity: RSETH provides liquidity for assets deposited into restaking platforms like EigenLayer, allowing users to access their assets without lock-ups.
Fractional Ownership: RSETH tokens are minted against deposited LSDs, signifying fractional ownership of the underlying assets, which can be used in DeFi for leverage or loans.
Dual Rewards: Users can earn both EigenLayer Restaked Points and Kelp Miles, enhancing their overall rewards.
Easy Management: RSETH simplifies the management of multiple restaking rewards, making it more convenient for users.
No Fees: Currently, Kelp DAO does not charge fees on deposits, making it a cost-effective option.
Composability: RSETH supports DeFi composability, allowing users to access a broader range of financial services.
- Security: Kelp DAO plans to undergo comprehensive audits with tier 1 security firms to ensure the highest standards of security for its users.
These features make RSETH a versatile and attractive option for users seeking liquidity and rewards in the restaking space.
Kelp DAO Restaked ETH (RSETH) is a Liquid Restaked Token (LRT) designed to address the risks and challenges inherent in current restaking options. However, it still carries several risks:
Smart Contract Risks: Users are exposed to multiple layers of smart contract risk, including the Eth2 staking contract, Kelp staking contracts, and EigenLayer restaking contracts.
Liquidity Risks: RSETH is designed to provide liquidity to illiquid assets, but the liquidity itself can be affected by market conditions and the performance of the underlying assets.
Reward System Risks: The rewards accumulated from various services to the rsETH contracts can be affected by the performance of these services, which may impact the price of rsETH tokens.
Gas Fee Risks: While rsETH aims to reduce gas fees, there is still a risk that high gas fees could impact the efficiency of the restaking process.
Risk of Losing ETH: If users choose to convert their ETH into YT Eth, they will not get their ETH back, even though they can earn airdrop points at a higher rate.
Risk of Forgoing Point Generation Potential: Participating in liquidity providing (LP rsETH) can result in forgoing some point generation potential if the price swings in the wrong direction.
These risks highlight the need for careful consideration and risk management when utilizing Kelp DAO Restaked ETH (RSETH).
- Amitej G: Co-founder of Kelp DAO, previously founded Stader Labs, a multichain liquid staking platform.
- Dheeraj B: Co-founder of Kelp DAO, previously founded Stader Labs, a multichain liquid staking platform.
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