Kelp DAO
Staking · Liquid Restaking · rsETH
Kelp DAO's rsETH is a liquid restaking token backed by a basket of accepted LSTs (e.g. stETH, ETHx), giving diversified restaking exposure with liquidity.
LST-backed liquid restaking basket.
rsETH price
$1857.59
+2.7% 24h
Latest data · 15 min delay
Risks identified
- Smart Contract
rsETH relies on complex deposit, oracle and withdrawal contracts plus off-chain (AWS Lambda) automation for undelegation. Audits found no criticals but issues required fixes, and LlamaRisk flagged the absence of an active bug bounty at review time and limited public GitHub visibility.
- Reserve / Depeg
The LRTOracle hardcodes stETH at 1:1 with ETH; if stETH (or ETHx) depegs, an arbitrageur could deposit the cheap asset and withdraw unaffected collateral, and the basket design socializes one asset's depeg across all rsETH holders. rsETH itself traded at roughly -1.5% discount during April 2024 market stress.
- Oracle
Exchange-rate integrity depends on the internal LRTOracle and permissioned price updates (ETHx rate sourced from Stader's contract; secondary Chainlink feed with 24h heartbeat). Faulty, stale or manipulated feeds could misprice mints and withdrawals.
- Counterparty
Restaking runs through EigenLayer and a small set of professional node operators (e.g. Kiln, Allnodes, Luganodes) delegating to multiple AVS. Failure, downtime or (once live) slashing at EigenLayer/AVS/operator level flows through to rsETH.
- Governance
At the LlamaRisk review no DAO existed; the protocol was controlled by a 6/8 admin multisig and a 2/5 manager multisig plus a 10-day timelock, with upgrade, oracle and operator powers concentrated in the team — a centralization and key-management risk.
- Collateral
Accepted collateral is concentrated in a few LSTs (stETH, ETHx) subject to deposit caps; ETHx is issued by the founders' own Stader platform, creating correlated exposure between the collateral issuer and the protocol operator.