Kelp DAO Restaked ETH (RSETH)

Use Case of Kelp DAO Restaked ETH

Kelp DAO Restaked ETH (RSETH) is a liquid restaking token that allows users to earn both Ethereum staking rewards and additional restaking rewards from EigenLayer's Actively Validated Services (AVSs) while maintaining liquidity.

Users deposit existing Liquid Staking Tokens (LSTs) like stETH or ETHx into the Kelp DAO protocol to mint RSETH. This gives them a single, fungible token that represents their staked and restaked ETH position. RSETH can be traded on decentralized exchanges, used as collateral in lending protocols, or supplied to liquidity pools.

The key benefits include dual rewards—standard Ethereum staking yield plus restaking yield from securing various networks—and simplified access to restaking without managing individual positions. The token's value grows over time as rewards accumulate, making it an attractive option for Ethereum holders seeking enhanced yield.

Pros of Kelp DAO Restaked ETH

Kelp DAO Restaked ETH (rsETH) offers several advantages. It provides users with the ability to earn both staking and restaking rewards simultaneously, allowing them to participate in EigenLayer's shared security model while maintaining liquidity. The protocol supports a wide range of networks—10+ EVM networks—giving users access to multiple ecosystems. It also features automated yield farming through its "Gain" product, which focuses on L2 points and airdrop opportunities. Users can use rsETH in DeFi protocols, liquidity pools, and as collateral, making it a versatile asset. The protocol has a relatively low restaking reward fee of 10%, and it supports a variety of liquid staking tokens including ETHx, ETH, and stETH.

Cons of Kelp DAO Restaked ETH

The primary concern with Kelp DAO Restaked ETH is security. In April 2026, a major exploit drained approximately $292 million from the rsETH bridge, representing roughly 18% of the token's circulating supply. This attack targeted the cross-chain messaging system, highlighting vulnerabilities in the bridge infrastructure. The incident also created potential bad debt of approximately $280 million. Users face risks including smart contract vulnerabilities, slashing risk on EigenLayer (where restaked ETH can be penalized for validator misbehavior), and potential price divergence of rsETH from its underlying assets. The protocol's reliance on cross-chain technology adds complexity and exposure to broader LayerZero security concerns.

Founders of Kelp DAO Restaked ETH

The founders of Kelp DAO Restaked ETH are Amitej Gajjala, Dheeraj Borra, Kratik Lodha, and Lucas Kozinski. Amitej Gajjala and Dheeraj Borra previously founded Stader Labs, a multichain liquid staking platform.

Investors in Kelp DAO Restaked ETH

The $9 million private sale round was led by SCB Limited (a proprietary trading firm based in the Bahamas) and Laser Digital (the digital asset arm of Nomura Global), with a combined $3.5 million investment. Other investors included Bankless Ventures, Hypersphere, Draper Dragon, DACM, Cypher Capital, ArkStream, Cluster Capital, GSR, Longhash, Side Door Ventures, NOIA Capital, HTX Ventures, Avid3, ViaBTC Capital, DWF Ventures, and Coinseeker. The round also received support from several notable angel investors in the crypto community, including Scott (co-founder of Gitcoin), Alex (CEO of Nansen), Sam K (co-founder of Frax), Marc Zeller (Aave Chan Initiative), Saurabh Sharma (Jump Crypto), Amrit (COO of Altlayer), Anthony (co-founder of Swissborg), and Winslow Strong (Mr. Block).

Halal Status

No, Kelp DAO Restaked ETH is not halal.

There is no official Shariah certification for Kelp DAO or its tokens. The project has not undergone formal halal screening by a recognized Islamic finance board. Users seeking halal compliance would need to wait for a formal review, but no such certification has been announced.