Kelp (KelpDAO): The rsETH Liquid Restaking Token, Reviewed
Kelp reviewed: KelpDAO's rsETH liquid restaking token stacking staking plus restaking rewards while staying liquid. How it works and who it's for.
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Staking ETH earns a base yield, but restaking can stack more on top by also securing additional services, at the cost of locking your ETH. Kelp, from KelpDAO, solves the lock-up with rsETH: deposit ETH or a liquid-staking token and receive a liquid restaking token that earns base staking plus restaking rewards while staying usable across DeFi. More yield, kept liquid, is the pitch, and the layered risk is the catch. Here is how it works and what to weigh.
What is Kelp?
Kelp, from KelpDAO, issues rsETH, a liquid restaking token. You deposit ETH or a liquid-staking token and receive rsETH, which represents restaked ETH earning base staking rewards plus restaking rewards from the services (AVSs) it helps secure, all while staying liquid so you can use it across DeFi. It is one of the more established liquid restaking tokens built on EigenLayer.
The core idea: restaking normally locks your ETH to secure extra services for extra yield. rsETH is a tradeable receipt for that position, so you keep liquidity and composability instead of having capital stuck.
How Kelp works
- Deposit ETH or a liquid-staking token into Kelp and receive rsETH.
- rsETH accrues rewards. It represents restaked ETH earning base staking yield plus restaking (AVS) rewards, and often points programs.
- Use rsETH in DeFi. Lend it, post it as collateral, or provide liquidity while the underlying keeps earning.
- Redeem or sell rsETH when you want exposure back, subject to withdrawal mechanics or market liquidity.
Why users choose Kelp
- Stacked rewards. Base staking plus restaking yield in one token.
- Liquidity kept. rsETH stays usable across DeFi instead of locking your ETH.
- Composability. Use rsETH as collateral or in LPs while it earns.
- Established LRT. One of the more recognized liquid restaking tokens on EigenLayer.
When to reach for something else: if you want simple staking without restaking's extra risk, a plain liquid-staking token (like stETH) is lower-risk; if you do not need liquidity, native restaking avoids the token layer.
Risks
Liquid restaking layers risk, and you take all of it: base staking risk, restaking slashing risk from the AVSs secured (a fault can cut principal), smart-contract risk in both Kelp and EigenLayer, and depeg risk if rsETH trades below its underlying value, which is amplified if you have used it as leverage collateral. Points-driven yields can also change. Understand the full stack before depositing, verify the official URL, and start with a small amount.
How to get started
- Open the app and connect a self-custody wallet.
- Deposit ETH or an LST to mint rsETH.
- Decide whether to use rsETH in DeFi or simply hold it, weighing the added risk of leverage.
- Start small and understand slashing and depeg risk before scaling.
Final verdict
Kelp is a solid way to earn stacked ETH rewards without locking your capital. rsETH combines base staking and restaking yield in a liquid, composable token built on EigenLayer. The trade-off is layered risk: slashing, smart-contract exposure across two protocols, and depeg risk that compounds if you use rsETH as leverage. If you understand restaking and want liquid, reward-stacked ETH, Kelp is a credible choice. Verify the URL, respect the layered risk, and start small.
For more, see our best Ethereum restaking protocols guide.
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Frequently asked questions
What is Kelp?
Kelp, from KelpDAO, issues rsETH, a liquid restaking token. You deposit ETH or a liquid-staking token and receive rsETH, which represents restaked ETH earning base staking rewards plus restaking (AVS) rewards, while staying liquid so you can use it across DeFi.
What is liquid restaking?
Restaking (via EigenLayer) lets staked ETH also secure additional services (AVSs) for extra rewards, but it locks your ETH. A liquid restaking token like rsETH gives you a tradeable receipt so you keep liquidity, using it in DeFi, while your underlying position keeps earning.
Is Kelp safe?
Kelp is non-custodial, but liquid restaking layers risk: base staking risk, restaking slashing risk from the AVSs secured, smart-contract risk in Kelp and EigenLayer, and depeg risk if rsETH trades below its underlying. Understand the stack before depositing. Verify the official URL and start small.
Can I use rsETH in DeFi?
Yes, that is the point. rsETH is liquid, so you can lend it, use it as collateral, or provide liquidity while the underlying keeps earning staking and restaking rewards. That composability is the appeal, but it also compounds the risk if the token depegs.