EigenLayer restaking and Kelp DAO rsETH: liquid restaking early queue thesis
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Explains restaking and its use cases (DA, sequencers, bridges, oracles), then argues Kelp DAO's rsETH can become the Lido of restaking as first mover with two audits. Details the Early Queue: 5,000 token cap each for stETH and ETHx and 1.25x Kelp Miles.
Key claims
Early Queue cap is 5,000 tokens each for stETH and ETHx, 10,000 total
Early Queue deposits earn 1.25x boosted Kelp Miles
Kelp has been audited twice
Missed Celestia, anon? 💸
It’s okay, just don’t miss EigenLayer. 👀
Restaking will be the narrative of 2024 you can get in on the @LidoFinance of the EigenLayer ecosystem. Don’t fade, this is a big one! 🪂
Be quick, there is less than 6h left to get in! ⌛️
Alpha-🧵
1/ @eigencloud will be a blackhole for Liquid Staking Derivatives (LSDs).
The value that will flow into restaking protocols will melt faces.
I found a protocol that will likely control the majority of the market.
2/ But before I give you the alpha of the year, let’s have a look at why EigenLayer matters and how it works! 👇
3/ When interacting with protocols (e.g. a DEX), users must not only trust Ethereum & the DEX, but also a number of other protocols that it interfaces with.
For example:
⚙️ Oracles for price feed
⚙️ Bridges for x-chain transfer
⚙️ Relayers for MEV Boost
⚙️ DA Provider (EigenDA)
4/ Users need to trust middleware services that is not secured by the Ethereum validator set.
They reside outside the ecosystem security and may introduce risk.
5/ But what if we could leverage Ethereum's trust network to secure middleware? 💡
Well, we can! 🤯
6/ @eigencloud leverages the Ethereum validator set to secure other networks through restaking ETH LSDs.
This allows stakeholders to subject their staked ETH (ETHx, stETH & cbETH) to additional slashing conditions in return for additional yield.
7/ So, restaking enables users to stake their ETH and staking derivatives for securing multiple networks and applications at the same time, amplifying their staking rewards at the same time.
8/ Additionally, restaking reduces cost barriers for protocols to launch and innovate.
They can leverage Ethereum's strong security layer without the need to bootstrap their own validator set.
9/ Restaking can enable all sorts of use cases, including:
⚙️ Data Availability Layers
⚙️ Decentralized Sequencers
⚙️ Low-Latency Bridges
⚙️ Oracles
⚙️ MEV-Aware Block Builders
⚙️ Fast Finality Settlement Layers
10/ But while restaking offers many benefits, it also introduces challenges for restakers to navigate:
⚠️ Finding services to stake for can be challenging.
⚠️ Claiming multiple tokens is cumbersome & costly (gas fees).
⚠️ Loss of liquidity (assets are locked).
11/ This finally brings me to @KelpDAO, the first-mover EigenLayer project that will become the @LidoFinance of restaking.
To solve the above challenges, Kelp introduces rsETH, a Liquid Restaked Token, designed to offer liquidity to illiquid assets deposited into @eigencloud.
12/ The problems rsETH solves:
🌟 Simplifying restaking decision: Kelp whitelists high-quality services and operators, reducing complexity.
🌟 Liquidity: Use rsETH across DeFi.
🌟 Automated background process: Users can directly claim all the rewards into their wallets.
13/ How can you get in on @KelpDAO now?
Easy. Participate in the Early Queue.
@KelpDAO's Early Queue allows restakers to deposit their assets until EigenLayer caps are met (6H UNTIL RAISE), solving issues that led to aspiring restakers being unable to participate in the past.
14/ It ensures that assets can be queued for EigenLayer deposits without having to wait until the 18th or risk caps being filled.
15/ What’s in it for you? 🤔
With restaking, a major incentives for a restaker is the additional yield on restaked ETH.
But with @KelpDAO that's not all you get! 👀
16/ You also earn Kelp Miles and EigenLayer Points!
Kelp Miles are designed to be complementary to @eigencloud restaked points & offer an additional layer of incentives to restakers.
Earn two of airdrops of 2024 at once! 🪂
17/ Restakers participating in the Early Queue with Kelp get boosted Kelp Miles. 🚀
These boosted Miles amount to 1.25x the regular Kelp Miles.
The rsETH minted through Early Queue deposits can be used across DeFi as integrations go live.
18/ The Early Queue is currently live in a capped format, with two accepted LSTs for now.
Caps will be raised & more LSTs added as we go further down the line.
What you need to know! 👇
19/
▶️ Accepted LSTs: Currently, Kelp DAO accepts stETH by Lido Finance & ETHx by Stader Labs.
▶️ Current cap: Each LST has a cap of 5,000 tokens, which brings the total accepted deposits to 10,000 tokens.
20/ Okay cool, but won't there be many liquid restaking protocols? Why @KelpDAO?
Easy. Kelp is the first mover. They are already capturing market share before @eigencloud is even live on mainnet.
They are also audited (twice) already and hence miles ahead of the competition.
21/ That’s a wrap for today! I hope you found this thread helpful! 🫡
Make sure to follow me @zerokn0wlege_ and @KelpDAO to stay up do date! ✨
Like/Repost of the below post is also highly appreciated! 🙏👇
Tagging some chads you should definitely follow! 🫡 👇
@2lambro
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And some more! 🫡👇
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