EigenLayer as generalized trust and the case for restaking via Kelp
Thread711 words
Frames EigenLayer as a generalization of Ethereum trust for DA layers, sequencers, bridges and oracles, then explains the restaking pain points rsETH solves and why Kelp, with over $174M TVL, is pitched as the leading LRT protocol.
Key claims
Kelp TVL above $174M, largest restaking protocol
1,000,000 extra EigenLayer points for ETHx minters before 2 Feb
100k Kelp Miles per rsETH minted
EigenLayer is the most important launch since Ethereum.
A general-purpose layer for programmable trust powered by restaking that allows you to bootsrap a decentralized network to run arbitrary apps.
Alpha-🧵 on maximizing your @eigencloud airdrop & earning two airdrops at once.
1/ In 2013 @VitalikButerin loved Bitcoin.
However, Bitcoin was limited because you couldn't build arbitrary programs on top of it.
He created Ethereum to take trustless execution of Bitcoin generalize it to arbitrary apps.
2/ In 2021 @sreeramkannan loved Ethereum.
However, Ethereum was limited because apps had to be built within the Ethereum virtual machine.
He created @eigencloud to take the trustless execution of Ethereum and generalize it to arbitrary usage.
3/ Few understand how big this actually is.
@eigencloud will give rise to entire ecosystems of novel applications.
It will enable use cases previously not feasible within Ethereum security guarantees.
4/ @eigencloud can literally enable any use case. Including:
⚙️ Data Availability Layers
⚙️ Decentralized Sequencers
⚙️ Low-Latency Bridges
⚙️ Oracle Networks
⚙️ MEV-Aware Block Builders
⚙️ Fast Finality Settlement Layers
⚙️ Restaked Rollups
5/ Importantly, @eigencloud lets you bootstrap a decentralized network to run arbitrary applications with ease.
This significantly reduces the complexity of building scalable & secure apps as building and maintaing a decentralized network is complex and expensive.
6/ This entire system is fueled by restaking protocols.
Restaking protocols supply the liquid staking derivatives (LSDs) to the system that crypto-economically secure @eigencloud-based applications.
This is a key part of the overall system.
7/ Restaking protocols also improve UX and solve a couple of issues that users face when they want to participate in @eigencloud's restaking.
⚠️ Finding services to stake for is challenging
⚠️ Claiming multiple tokens is costly (gas fees)
⚠️ Loss of liquidity (assets locked)
8/ To solve the above challenges, Kelp introduces rsETH, a Liquid Restaked Token, designed to offer liquidity to illiquid assets deposited into @eigencloud.
9/ 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
10/ So finally let me introduce you to the king of restaking protocols.
This protocol enables you to earn more EigenLayer points than you'd get anywhere else.
But that's not all. Using it also makes you eligible for its own airdrop on top.
11/ Exactly anon, we're talking about @KelpDAO.
Kelp has a TVL of > USD 174 million, making it the largest restaking protocol by far!
Now, the @KelpDAO restaking queue has finally opened up again!
12/ Deposit your LSDs with @KelpDAO today and have them automatically deposited into EigenLayer as soon as they unpause deposits.
You can deposit:
✦ sfrxETH
✦ ETHx
stETH deposits are currently halted due to @eigencloud caps being almost full.
13/ Wait, didn't you say something about airdrops?
Yes, I did!
By restaking with @KelpDAO you earn @eigencloud points that will likely make you eleigible for one of the biggest airdrops of crypto history.
14/ But I can do that elsewhere too, why @KelpDAO?
Kelp is the place with the highest EigenLayer point rewards out there.
If you mint and deposit ETHx before the 2nd of February, you will be eligible for a total of 1,000,000 extra EigenLayer Point rewards!
15/ But that's not even all the alpha here!
New depositors get 100k Kelp Miles for each rsETH they mint!
Kelp Miles will make you eligible for the KELP airdrop.
I'm sure you don't want to fade the airdrop of the biggest restaking protocol. Right anon?
x.com/KelpDAO/status/1748019979755360453?s=20
16/ Are you bullish yet anon?
According to rumours I hear, the total Airdrop supply will increase when a certain TVL threshold is met.
So start depositing and make sure you don't fade two of the biggest airdrops of 2024!
17/ Almost forgot to mention one last thing:
@eigencloud will likely turn into an airdrop farm like @CelestiaOrg pretty quickly.
Missed @alt_layer because you weren't restaking?
Change it today and position yourself for @eigencloud season!
18/ That's a wrap! I hope you've found this thread helpful! 🫡
Make sure to follow me @zerokn0wledge_ to stay up to date on all thing related to @eigencloud & restaking!
Like/Repost of the below post is also highly appreciated! 🙏👇
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What came next · since 19 Jan 2024
Since then
Zero has written 29 more pieces on EigenLayer since this one.