Today, we’re diving deeper into KELP DAO. This guide will be pretty detailed, with relevant links to Kelp blogs. And, of course, we will briefly discuss the ongoing airdrop.
Introduction
DeFi is evolving rapidly. Innovations emerge daily, pushing the boundaries of what’s possible. Among these advancements lies a promising new trend—Liquid Restaking. This trend sets the stage for Ethereum’s next major DeFi opportunity.
Kelp is a decentralized autonomous organization (DAO) focused on unlocking liquidity, enhancing DeFi, and increasing rewards for restaked assets. It offers a single liquid restaked token for accepted liquid staked tokens (LSTs). The token, rsETH, will continue to be developed under the Kelp brand, with more updates on its progress coming soon.
To understand how Kelp operates, let’s first explore the concept of restaking.
What is Restaking?
Restaking allows Ethereum stakers to use their already staked ETH as security for various services. Stakers deposit their staked ETH as collateral and earn rewards in return. This process significantly enhances the utility of staked assets.
Understanding EigenLayer
EigenLayer is a notable protocol built on Ethereum that popularizes restaking. It introduces a new economic security method, enabling ETH stakers to reuse their assets for multiple purposes. This innovation broadens the potential applications of staked ETH within the DeFi ecosystem.
The Benefits of Restaking
Restaking opens up a variety of opportunities for different participants:
- Economic Security for Protocols: Restaking enhances the security of decentralized protocols by increasing the collateral available.
- Easy Bootstrapping for New Projects: It facilitates the growth of new projects by providing immediate security.
- Improved Capital Efficiency for Stakers: Stakers can maximize their returns by using their assets in multiple places.
Challenges in Restaking
Despite the numerous advantages, restaking comes with its own set of challenges:
- Complex Reward Structures: Understanding how rewards are distributed can be difficult.
- High Gas Fees: Transactions can become costly, reducing the overall profitability.
- Liquidity Constraints: Users may struggle to access their staked assets when needed.
- Finding Suitable Node Operators: The process of identifying reliable operators can be cumbersome.
- Opportunity Costs: Users often face difficult decisions between restaking and exploring other DeFi opportunities.
Enter Liquid Restaking
Liquid restaking is a groundbreaking concept in DeFi. It enhances the flexibility and liquidity of staked assets while maintaining rewards and security.
How rsETH Addresses Challenges
rsETH is Kelp’s liquid restaked token. It can be minted against LSTs accepted as collateral on EigenLayer. This token allows fractional ownership of staked assets and provides easy access to both restaking and DeFi opportunities. Additionally, rsETH addresses issues like complex reward structures and high gas fees.
At Kelp, we are dedicated to innovating within the restaking and DeFi landscape. We are excited to announce the launch of Gain, powered by Kelp. This initiative marks a significant leap in optimizing rewards for users. Gain simplifies access to multiple Layer 2 (L2) airdrops and DeFi opportunities through a single, diversified strategy.
Introducing Gain by Kelp
Gain acts as your personal concierge for DeFi. It provides access to multiple L2 networks and DeFi protocols simultaneously. This system streamlines participation in airdrop opportunities and various DeFi strategies. Users can dive into high-growth opportunities with just one click. Optimizing the way you can farm KELP miles and more.
What is Gain by Kelp?
Gain can be viewed as a series of vaults that automate asset deployments according to predefined reward farming strategies. These vaults aim to maximize rewards while minimizing risks.
Kelp’s vaults are non-custodial, meaning users can withdraw their assets anytime. They also ensure complete transparency in asset deployment. August, Kelp’s infrastructure partner, has built the smart contracts for these vaults, while Tulipa Capital serves as the strategy manager.
Presenting Airdrop Gain
The latest feature of Gain by Kelp is Airdrop Gain. This edition aggregates token and point rewards from various L2 networks and connects users to mainnet DeFi opportunities.
They have built Airdrop Gain in collaboration with several partners:
- L2 Partners: Linea, Scroll
- Restaking Partners: Karak, EigenLayer
- DeFi Partners: Pendle, Lyra, Splice, Spectra
- Bridge Partners: LayerZero, Across
- Strategy Manager: Tulipa
- Infrastructure Partner: August
The list of partners is not exhaustive and may continue to grow. Most of these projects above have already been listed on AirdropAlert.com. So you can easily combine your airdrop farm. Currently, Airdrop Gain accepts the following assets:
- Native ETH
- rsETH by Kelp DAO
- ETHx by Stader Labs
- stETH by Lido Finance
You can find all the airdrop details on Airdrop Alert’s listing.
User Benefits and Fees
Advantages of Airdrop Gain
Using Airdrop Gain offers several benefits:
- Maximized Airdrops: Users can earn multiple airdrops across various L2 networks at once.
- Liquid Token Utility: The agETH token enhances DeFi access across platforms like Pendle, Spectra, and Lyra.
- One-Click Deployment: Users can streamline their asset deployment and save on gas fees.
Fees Associated with Gain
A 2% annual platform fee is charged for vault management. This fee is distributed among Kelp, the Vault Strategist, and the Infra provider.
You can read a full guide on Gain on Kelp’s blog.
Tracking Performance
Users can monitor their deposits through the Airdrop Gain interface. It provides real-time data on rewards, airdrops, and overall asset growth.
Complementary Tokens: agETH and rsETH
Kelp’s liquid restaking token, rsETH, and the new Airdrop Gain receipt token, agETH, are designed to work together.
rsETH: The DeFi Reward Powerhouse
rsETH was created to allow users to combine staking and restaking rewards without sacrificing liquidity. Users can mint rsETH by depositing ETH, ETHx, or stETH through the Kelp dApp and track rewards via our dashboards. Alternatively, rsETH can be swapped across various decentralized exchanges (DEXs) and lending markets.
One of rsETH’s main strengths is its flexibility. It can be minted natively on over nine Layer 2 networks, including Arbitrum, Optimism, and ZKsync, making it widely accessible. Holders earn Kelp Miles, EigenLayer Points, and various protocol rewards while maintaining the liquidity needed to adapt in DeFi.
rsETH integrates with over 40 DeFi platforms across these networks. With more than $300 million in liquidity, platforms like Balancer, Pendle, and Curve allow users to leverage rsETH in liquidity pools, lending markets, and yield optimizers.
agETH: Your Gateway to Airdrop Farming
agETH symbolizes our commitment to innovation in reward optimization. It is the tokenized representation of a depositor’s share in Airdrop Gain. To use agETH, users simply deposit ETH, rsETH, ETHx, or stETH into Gain and receive agETH in return.
The seamless integrations provide agETH holders access to multiple airdrops while minimizing gas fees and eliminating bridging costs.
While agETH can only be minted on the Ethereum network through Kelp Gain, it can also be utilized across the broader DeFi landscape. It is designed to maximize airdrop potential and enable participation in advanced DeFi strategies.
By leveraging agETH on platforms like Pendle and Balancer, users can unlock additional rewards.
If you are left with any questions after this blog, go ahead and check the FAQ here.
The Perfect Pair: agETH and rsETH
Individually compelling, agETH and rsETH create even greater value when used together. By combining the liquidity and DeFi utility of rsETH with the reward optimization of agETH, users can achieve synergies.
For instance, users can deposit a portion of their rsETH holdings into the Airdrop Gain vault to mint agETH. This approach allows them to earn rewards from both tokens simultaneously. They can further enhance their returns by participating in the rsETH and agETH pool on Balancer or Pendle.
At Kelp DAO, we are excited about the potential of agETH and rsETH. Whether you seek to stack restaking rewards or maximize airdrop potentials, these tokens are designed to enhance your DeFi experience.
Explore agETH and rsETH today and see how they can elevate your DeFi journey. Stay connected through our community channels as we continue to lead and innovate in decentralized finance.
Kelp made it to our list of hottest airdrops to farm for the remaining of 2024. So don’t miss it. You can find more guides over here.
Disclaimer: This is a sponsored blog post. The information provided here is for informational purposes only and does not, under any circumstances, constitute investment advice, financial advice, trading advice, or any other form of advice. Before making any investment decisions, individuals must conduct thorough due diligence and seek consultation with a qualified financial advisor.
