Kelp

Liquid Restaking

Kelp is a liquid restaking protocol built by Stader Labs team.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Kelp was founded by the Stader Labs team to build a liquid restaking solution for Proof-of-Stake (PoS) assets like ETH. The first liquid restaked token (LRT) offered by Kelp is rsETH.
What we like less
Kelp users are exposed to multiple layers of smart contract risk including the Eth2 staking contract, Kelp staking contracts, and EigenLayer restaking contracts. Node operators are also currently permissioned at this stage.
What it means for you
Kelp enables you to easily get access to both staking and restaking rewards for ETH through its rsETH token, while remaining liquid.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $744.2M (Rank #28)
  • TVL Ranking by Liquid Restaking: #4
  • Blockchain: Ethereum
  • Chain TVL
    • Ethereum: $744.23M
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by several experienced auditors; Sigma Prime and code4rena
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Latest protocol version launched in 2023; maturity less than six months increases technical risk as smart contracts are less battle-tested
  • Top 5% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • No governance token and/or contracts are fully immutable
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to staking a token to secure a network, such as slashing events
Things to know about Kelp

What is Kelp

Kelp DAO was founded by the team behind Stader Labs, a multichain liquid staking platform, to build liquid restaking solutions for blockchain networks. The first liquid restaked token (LRT) offered by Kelp is rsETH, which aims to address the risks and challenges posed by the current restaking offering. To mint rsETH, stakers first come to Kelp with their liquid staked token (LST). Once deposited, the rsETH contracts then distribute the LST into different node operators that operate with the Kelp DAO. Rewards from various services accrue to the rsETH contracts, with the price of rsETH accruing from the various rewards.

How Kelp makes money

Currently, Kelp DAO does not charge any fees on LST deposits. Users can deposit and mint rsETH without incurring any fees.

How you make money on Kelp

You can generate additional yield on top of your LSTs by depositing into Kelp to earn restaking rewards. The unlocked liquidity with rsETH can also be redeployed within a number of popular DeFi protocols to generate additional yield on top of the staking and restaking rewards.