What is rsETH/WETH Convex Deposit?
This vault optimizes yields for the Curve rsETH/WETH pool through Convex Finance. rsETH is Kelp DAO's restaked ETH token, providing liquid access to EigenLayer restaking rewards while maintaining full composability in DeFi.
Understanding rsETH and Kelp DAO
Kelp DAO created rsETH as a unified liquid restaking token:
- Multi-LST Backing: rsETH accepts multiple liquid staking tokens (stETH, cbETH, etc.)
- EigenLayer Integration: Deposited LSTs are restaked through EigenLayer
- Diversified Restaking: Exposure to multiple node operators and AVSs
- Liquid Token: rsETH can be used throughout DeFi while earning restaking yields
Kelp's approach allows users to gain restaking exposure without choosing specific operators or AVSs.
How This Vault Works
The Convex strategy optimizes rsETH/WETH LP returns:
- Provide rsETH and/or WETH to Curve pool
- Deposit LP tokens into Convex vault
- Convex stakes in Curve gauges with boosted veCRV power
- Collect CRV, CVX, and underlying restaking rewards
Kelp Points and Incentives
rsETH holders earn:
- Kelp Miles (Kelp's points program)
- EigenLayer points
- Underlying LST yield (from stETH, etc.)
- Potential AVS airdrops
LP positions may capture some but not all of these benefits.
Fee Structure
Convex standard fees:
- 16% of CRV rewards
- No deposit/withdrawal fees
Kelp DAO fee structure applies to restaking rewards.
cvxCRV and vlCVX Mechanics
This Convex vault benefits from the broader CVX ecosystem:
- Convex's veCRV provides gauge boost
- cvxCRV stakers fund the CRV buybacks
- vlCVX holders direct gauge votes to profitable pools
- The entire system creates sustainable yield for LP depositors