Performances
Comparison
Details
This content is generated by RD AI and is for reference only
Kelp DAO is a liquid restaking protocol built on EigenLayer, created by the team behind Stader Labs. It allows users to deposit native ETH or liquid staking tokens (such as stETH, ETHx) and mint a liquid restaking token, rsETH. rsETH represents the underlying assets and accumulated restaking rewards, and can be freely used in DeFi applications while earning EigenLayer restaking yields. Kelp DAO supports multiple chains, offers cross-chain functionality, and acts as an abstraction layer on top of EigenLayer, enabling users to participate in restaking without directly interacting with the underlying protocol. Its smart contracts have been audited by multiple security firms and it provides a withdrawal function.
Developer
Follow Updates
Follow Lists
People
About Kelp DAO
Kelp DAO is a liquid restaking protocol that lets users deposit native ETH or liquid staking tokens (LSTs) to mint rsETH, a liquid restaking token (LRT). This rsETH can then be deployed across multiple DeFi protocols, generating what the project calls 'triple yield': base staking rewards, restaking incentives, and additional DeFi farming rewards. The core value proposition is solving the liquidity problem in restaking—traditionally, restaked assets are locked, but rsETH remains freely usable across 9 Ethereum L2s and 40+ DeFi integrations, giving users both yield and liquidity.
The main market pain point Kelp addresses is capital inefficiency in restaking. Without a liquid wrapper, restaked ETH is illiquid and cannot participate in other opportunities. rsETH unlocks this trapped value, allowing users to maximize returns without sacrificing flexibility. The project's competitive edge lies in its extensive L2 and DeFi partnerships, which create a wide surface for earning extra incentives, and its focus on institutional-grade security through multiple audits.
In the past six months (March to September 2026), Kelp DAO faced a major security incident: on April 18, 2026, an exploit resulted in a $300 million loss of rsETH, attributed to a compromise of LayerZero's infrastructure (reportedly by Lazarus Group). KelpDAO publicly criticized LayerZero's initial response, claiming it shifted blame to users, and subsequently migrated its cross-chain infrastructure to Chainlink CCIP to enhance security. Separately, KelpDAO has been expanding into 'commercial yield'—a new product line targeting real-world business financing. It plans to launch KUSD, a stablecoin backed by short-term trade and payment finance assets, with sKUSD staking targeting ~10% APY. This aims to bridge DeFi capital with traditional business liquidity needs, addressing a $2.5 trillion global financing gap. However, these plans are still in development, with a target launch in Q2 2026 (which appears to have slipped). Overall, Kelp DAO is navigating post-exploit recovery while pivoting toward real-world asset-backed yield, though the commercial yield product is not yet fully operational.
Kelp DAO, as a triple-yield restaking protocol, has key milestones of long-term significance: On April 18, 2026, the rsETH cross-chain bridge was hacked, resulting in a loss of approximately $292 million, marking it as the largest DeFi security incident of the year. Following the attack, Aave urgently froze related markets, Kelp DAO suspended contracts to mitigate losses, and the Arbitrum committee froze approximately $71 million in ETH. The attacker subsequently moved funds, and Aave completed liquidation of remaining rsETH positions. After five weeks of repairs, rsETH fully recovered on May 26, with Kelp DAO announcing full operational restart. This incident triggered deep industry reflection on the mismatch between risks and returns in DeFi, with Jefferies noting it may slow Wall Street's blockchain adoption pace, becoming a significant turning point for DeFi risk management.
In March 2026, Kelp DAO published its Q1 report: total TVL reached $1.33B, rsETH supply across Aave markets hit ~$1.2B, Gain vaults surpassed $100M TVL and topped vaults.fyi ETH vault rankings, KUSD secured hundreds of millions in LP commitments, and protocol revenue was ~$1M. rsETH also launched on the Aave V4 Core Hub Spoke.
On April 18, 2026, the protocol suffered a ~$292M exploit via its LayerZero-based bridge (~116,500 rsETH stolen), and core contracts were paused. On May 26, Kelp DAO declared the operational recovery complete, with minting, redemptions and rewards restored; Aave and partners refilled ~116,000 rsETH through the DeFi United initiative. On May 6, Kelp announced migration of rsETH to Chainlink CCIP for enhanced security.
Official roadmap: KUSD mainnet launch targeted for late Q2 2026, continued Gain vault integrations, and further rsETH expansion across new L2s and lending markets.
Kelp DAO Co-founders & Core Team:
Amitej Gajjala (Co-founder): Previously AVP at Swiggy and AT Kearney; MBA from IIM Calcutta; also co-founded Stader Labs.
Dheeraj Borra (Co-founder): Former engineer at LinkedIn, Blend Labs, and PayPal.
Antonio M. (Head of Ecosystem & Growth): Previously at Stader Labs; co-founded Near Malaysia.
Cyborg Soufia (DeFi Lead) and Indrajit Ghosh (Marketing Lead) are also on the core team.