What is rsETH (rsETH)?

Quick Facts

  • Issuer: Kelp DAO, a decentralized restaking protocol
  • Token type: Liquid Restaked Token (LRT)
  • Underlying infrastructure: EigenLayer on Ethereum
  • Accepted deposits: ETH and liquid staking tokens (LSTs) like stETH, rETH, cbETH
  • Blockchains: Ethereum (primary), Arbitrum
  • Use cases: DeFi collateral, yield optimization, cross-protocol liquidity

Introduction

rsETH is the native Liquid Restaked Token (LRT) of Kelp DAO. It is designed to bring liquidity to assets that would otherwise be locked inside restaking platforms like EigenLayer.

By holding rsETH, users maintain a tradable, usable token while their underlying ETH continues to earn both staking and restaking rewards — without sacrificing flexibility.

History & Background

Kelp DAO launched rsETH in 2023 as a response to a growing problem in the Ethereum ecosystem: illiquidity in restaking. As EigenLayer emerged and gained traction, users faced a dilemma — earn restaking rewards or keep their assets liquid for DeFi.

Kelp DAO solved this tension by introducing rsETH, a single unified token representing restaked ETH positions across multiple Actively Validated Services (AVS) protocols.

How rsETH Works

The process is straightforward. Users deposit ETH or accepted LSTs (such as stETH or rETH) into the Kelp protocol. In return, they receive rsETH, which represents their share of the protocol's pooled restaked assets.

Kelp routes these deposited assets through EigenLayer, which allows them to simultaneously secure additional blockchain services beyond Ethereum's core consensus. Rewards from multiple AVS protocols are aggregated and reflected in the value of rsETH over time.

This means rsETH holders earn yield from both traditional ETH staking and EigenLayer restaking — often referred to as 'double-dipping' on staked ETH.

Tokenomics

rsETH is an ERC-20 token minted when users deposit eligible assets into Kelp's protocol. It is not mined — new tokens are created solely when assets are deposited. The token's value accrues as underlying staking and restaking rewards accumulate in the protocol pool.

rsETH can be freely traded on decentralized exchanges, used as DeFi collateral, or held to passively accumulate rewards — making it a capital-efficient instrument by design.

Circulating supply ? 560,933 rsETH
Total supply ? 560,933 rsETH
Max supply ? -- rsETH
Updated 4h ago

Ecosystem & Use Cases

rsETH is composable across the broader Ethereum DeFi ecosystem. Key use cases include:

  • Yield optimization: Earning aggregated rewards from multiple AVS protocols simultaneously
  • DeFi collateral: Using rsETH to collateralize loans or participate in lending markets
  • Cross-chain liquidity: rsETH is available on Arbitrum, expanding its reach beyond Ethereum mainnet
  • DEX trading: rsETH can be freely traded on platforms like Uniswap and Camelot

Team, Governance & Community

Kelp DAO operates as a decentralized autonomous organization, with governance participation open to its community. The protocol engages its user base through Discord, Telegram, and Twitter under the handle @KelpDAO.

Kelp has undergone multiple smart contract audits to strengthen protocol security and build community trust.

Advantages

  • Maintained liquidity: Users retain a tradable token while their ETH is restaked
  • Aggregated yields: Rewards from multiple AVS protocols compound automatically
  • Single-token simplicity: One unified LRT covers multiple underlying LST positions
  • DeFi composability: rsETH integrates with lending, trading, and cross-chain protocols
  • Capital efficiency: ETH works harder without requiring users to manage multiple positions

Risks & Challenges

  • Smart contract risk: Bugs in Kelp or EigenLayer contracts could put deposited assets at risk
  • EigenLayer dependency: rsETH's performance is tied to EigenLayer's security and reliability
  • LST price fluctuations: Changes in the value of underlying LSTs affect rsETH's value
  • Protocol complexity: Multi-layered restaking introduces compounding points of failure
  • Slashing risk: AVS protocols may impose penalties that reduce underlying asset value

Long-Term Vision

Kelp DAO aims to become a central hub for liquid restaking on Ethereum, simplifying access to complex restaking strategies for a broad audience. The protocol's roadmap focuses on expanding AVS integrations, growing cross-chain availability, and deepening DeFi composability for rsETH holders.

As the restaking sector matures, rsETH is positioned to serve as a building block for a more interconnected and capital-efficient Ethereum ecosystem.

Frequently Asked Questions

rsETH is a Liquid Restaked Token (LRT) issued by Kelp DAO. It represents ETH or liquid staking tokens deposited into the Kelp protocol and restaked via EigenLayer, allowing users to earn restaking rewards while keeping their assets liquid.

You can obtain rsETH by depositing accepted assets — such as ETH, stETH, rETH, or cbETH — into the Kelp DAO protocol. The protocol mints rsETH proportional to your deposit and routes your assets through EigenLayer for restaking.

rsETH earns rewards from both traditional Ethereum staking and EigenLayer restaking across multiple Actively Validated Services (AVS) protocols. These rewards are aggregated and reflected in the appreciating value of rsETH over time.

Yes. rsETH is deployed on both Ethereum mainnet and Arbitrum, allowing users on the Arbitrum network to access liquid restaking without bridging to mainnet.

The main risks include smart contract vulnerabilities in Kelp or EigenLayer, slashing penalties from AVS protocols, and price fluctuations in the underlying liquid staking tokens. Kelp has undergone multiple audits to mitigate smart contract risk.

Regular LSTs like stETH represent ETH staked only on Ethereum's consensus layer. rsETH goes a step further by restaking those LSTs through EigenLayer, enabling holders to earn additional yields from securing external blockchain services.

Yes. rsETH is a composable ERC-20 token that can be traded on decentralized exchanges, used as collateral in lending markets, and integrated into other DeFi protocols across Ethereum and Arbitrum.

Kelp DAO is governed by its decentralized community. Token holders and community members participate in governance decisions, and the project engages its user base through social channels including Discord, Telegram, and Twitter.