What is Kelp (KernelDAO)?
Kelp, now part of the KernelDAO umbrella, is a liquid restaking protocol whose rsETH token represents restaked ETH. rsETH provides aggregated exposure to multiple underlying liquid staking tokens restaked through EigenCloud (formerly EigenLayer). Launched in late 2023, Kelp grew into one of the leading liquid restaking protocols and now sits alongside KernelDAO's other products.
April 2026 exploit: On April 18, 2026 an attacker exploited a bridge flaw and minted about 116,500 unbacked rsETH, roughly $292 million, the largest DeFi hack of 2026. It was later attributed to the Lazarus Group and used as fake collateral on lending markets, contributing to a broad DeFi drawdown. Any current figures for rsETH backing and TVL should be verified after the incident, and users should be aware of the exploit before depositing.What makes Kelp distinctive is its aggregator model. Instead of accepting only ETH, Kelp accepts various liquid staking tokens (stETH, ETHx, and others) and restakes them, issuing rsETH in return, so rsETH holders benefit from the combined restaking rewards of multiple LST strategies.
Key Statistics
- Total Value Locked: Under review after the April 2026 exploit (previously around $1.5B)
- Main Token: rsETH (restaked ETH)
- Supported Inputs: ETH, stETH, ETHx
- Networks: Ethereum mainnet, with bridges to L2s
- Restaking Integration: EigenCloud (formerly EigenLayer)
- Security Audits: SigmaPrime, Code4rena audits (note the April 2026 bridge exploit)
- Governance: KERNEL token (KernelDAO)
How Kelp DAO Works
Aggregated Restaking
Kelp's model aggregates multiple LSTs:
- User deposits ETH or LSTs (stETH, ETHx)
- Kelp restakes these on EigenLayer
- User receives rsETH tokens
- RsETH accrues value from all underlying yields
- Benefit from staking + restaking + Kelp points
Understanding rsETH
rsETH is a value-accruing liquid restaking token:
- Exchange rate vs ETH increases over time
- Represents basket of restaked LSTs
- Diversified exposure to multiple staking strategies
- Liquid and tradeable
- DeFi composable for additional strategies
Multi-LST Strategy
The protocol holds multiple LSTs:
| Underlying | Strategy |
|---|---|
| . . . . . . | . . . . . |
| stETH | Lido staking + EigenLayer |
| ETHx | Stader staking + EigenLayer |
| Native ETH | Direct restaking |
Step-by-Step: Using Kelp DAO
Minting rsETH:- Visit kelpdao.xyz
- Connect your Ethereum wallet
- Select input: ETH, stETH, or ETHx
- Enter amount to restake
- Approve and confirm transaction
- Receive rsETH immediately
- Provide liquidity on DEXs
- Use as collateral on Pendle
- Farm on partner protocols
- Hold for passive yield + points
- Request withdrawal through protocol
- Wait for processing
- Receive underlying assets
- Or swap on DEXs for liquidity
Track rsETH performance across your portfolio with Fensory.
Kelp DAO Fees
| Fee Type | Amount | Description |
|---|---|---|
| . . . . . | . . . . | . . . . . . - |
| Deposit | 0% | No fee to mint |
| Protocol Fee | ~10% of rewards | On restaking yields |
| Withdrawal | Variable | Based on liquidity |
| Swap | DEX fees | If using DEXs |
Current APY Ranges
| Product | Typical APY | Notes |
|---|---|---|
| . . . . - | . . . . . . - | . . . - |
| rsETH | 4-7%+ | Aggregated restaking yield + points |
| rsETH LP | 10-25% | DEX liquidity incentives |
Key Features
1. LST Aggregation
Exposure to multiple liquid staking strategies through single token.
2. Simplified Restaking
Easy entry to EigenLayer without managing multiple positions.
3. Diversified Risk
Multiple underlying LSTs reduce single-protocol risk.
4. Points Program
Active Kelp Miles program rewarding participants.
5. DeFi Integration
rsETH accepted across lending, DEXs, and yield protocols.
6. Flexible Deposits
Accept ETH or existing LSTs for minting.
Kelp DAO vs Competitors
| Feature | Kelp (KernelDAO) | Renzo | Ether.fi |
|---|---|---|---|
| . . . . - | . . . . . | . . . - | . . . . . |
| TVL | Under review post-exploit | $3B+ | $5B+ |
| Model | LST Aggregator | Direct | Direct |
| Inputs | ETH, stETH, ETHx | ETH | ETH |
| Token Type | Value-accruing | Value-accruing | Rebasing + wrapped |
| Points Program | Kelp Miles | ezPoints | Loyalty Points |
| Governance Token | Coming | REZ | ETHFI |
Risk Considerations
April 2026 Bridge Exploit
On April 18, 2026 a bridge flaw was exploited to mint roughly $292M of unbacked rsETH, the largest DeFi hack of 2026, later attributed to the Lazarus Group. Verify current rsETH backing and TVL before depositing.
Smart Contract Risk
Kelp interacts with multiple protocols (EigenCloud, Lido, Stader) and bridges, increasing smart contract surface area, as the April 2026 exploit showed.
Underlying Protocol Risk
rsETH depends on the security of underlying LSTs. Issues with Lido, Stader, or others could impact rsETH.
EigenLayer Risk
Restaking introduces novel risks including AVS slashing and economic security assumptions.
Aggregation Risk
The multi-LST model adds complexity vs single-asset restaking.
Liquidity Risk
rsETH may have less deep liquidity than larger LRTs in stress scenarios.
Points Dependency
Current yields partially driven by points programs that may change.
Risk Disclaimer: DeFi protocols carry inherent risks including smart contract vulnerabilities and market volatility. Never invest more than you can afford to lose.Frequently Asked Questions
What is rsETH backed by?rsETH is backed by a mix of LSTs (stETH, ETHx) and ETH that are restaked through EigenCloud. Note that the April 2026 bridge exploit minted roughly $292M of unbacked rsETH, so current backing should be verified before relying on published figures.
Why use Kelp instead of direct restaking?Kelp simplifies the process, provides liquidity through rsETH, and aggregates exposure across multiple LST strategies.
What are Kelp Miles?Points earned by depositing and holding rsETH, potentially convertible to governance tokens or other rewards.
Can I deposit existing stETH?Yes, Kelp accepts stETH, ETHx, and ETH for minting rsETH.
How does rsETH maintain its value?rsETH's exchange rate increases as underlying staking and restaking rewards accrue, plus withdrawal mechanism provides floor.
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