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Kelp DAO
Liquid restaking protocol issuing rsETH across Ethereum and layer-2 networks
3.3/ 5
Our score
Fair
Type
Liquid restaking
Receipt token
rsETH
Audited
Yes
What is Kelp DAO?
Kelp DAO is a liquid restaking protocol operating as part of the KernelDAO ecosystem. It issues rsETH, a liquid restaked receipt token backed by native ETH and liquid staking tokens restaked across underlying validation layers such as EigenLayer. In October 2026, protocol total value locked stood at approximately $977 million.
Team and funding
Kelp DAO was introduced in November 2023 by co-founders Amitej Gajjala and Dheeraj Borra, who previously co-founded Stader Labs. Gajjala formerly worked at Swiggy and A.T. Kearney and holds an MBA from IIM Calcutta. In May 2024, the protocol raised $9 million in a private token sale co-led by SCB Limited and Laser Digital, with participation from Bankless Ventures, Hypersphere Ventures, Draper Dragon, and GSR.
How restaking and bridging work
Users deposit ETH or liquid staking tokens such as stETH and ETHx to mint rsETH. Deposits earn base staking rewards alongside restaking incentives, while rsETH maintains utility across decentralized exchanges, lending markets, and yield vaults. Kelp DAO deployed rsETH bridging across layer-2 ecosystems including Base, Mantle, Linea, Optimism, and Ink, and completed a migration to Chainlink CCIP in October 2026.
Security track record and incidents
Kelp DAO completed audits of its smart contracts and maintains a bug bounty program offering payouts up to $250,000. On 18 April 2026, an exploit targeting the protocol's previous LayerZero cross-chain bridge implementation resulted in a loss of roughly $292 million via cross-chain message spoofing. In September 2026, Kelp DAO initiated legal proceedings against LayerZero and its leadership related to the exploit.
Risks and considerations
Restaking introduces layered smart contract dependencies beyond baseline Ethereum staking. Holders face slashing risks from both Ethereum validators and secondary restaking networks, alongside the possibility of rsETH depegging on secondary markets. Bridge infrastructure risks also persist when moving restaked receipts across supported layer-2 networks.
Founders
Amitej GajjalaCo-Founder
Previously co-founded Stader Labs, worked at Swiggy and A.T. Kearney, and holds degrees from IIT Madras and IIM Calcutta.
Dheeraj BorraCo-Founder
Previously co-founded Stader Labs.
Best for:Restaking native ETH and stETHDeFi liquidity providers on L2sYield farming with restaked assets
Pros and cons
Pros
- Retains liquidity via rsETH while earning restaking rewards
- Accepts both native ETH and established liquid staking tokens
- Chainlink CCIP integration for transfers across multiple layer-2 networks
- Supported across more than 40 DeFi platforms and lending pools
Cons
- Suffered a $292 million cross-chain bridge exploit in April 2026
- Exposes holders to layered slashing risk across multiple validation services
- Subject to rsETH secondary market depeg risks during market volatility
Our review
3.3/5
Fair
Kelp DAO offers broad multichain restaking liquidity through rsETH, but users take on complex cross-chain bridging risks and smart-contract exposure.
Kelp DAO is a liquid restaking protocol developed under the KernelDAO umbrella. Operating on Ethereum and bridging across multiple networks, it issues rsETH, a receipt token backed by native ETH and liquid staking assets including stETH and ETHx. The protocol automates allocation into EigenLayer. Depositors earn staking rewards and restaking yields simultaneously without running their own validation infrastructure.
The protocol brings noticeable advantages in utility and DeFi availability:
- Deep ecosystem integration, with rsETH supported across decentralized exchanges, lending pools, and automated vaults.
- Flexible asset acceptance. Users can deposit either raw ETH or liquid staking tokens like stETH and ETHx.
- Institutional backing, with $9 million raised from investors including SCB Limited, Laser Digital, and Bankless Ventures.
These features come alongside serious structural trade-offs. Restaking layers smart contracts on top of base consensus, which adds code risk and counterparty exposure. Kelp DAO experienced a severe security breach on April 18, 2026, when an exploit targeting its LayerZero bridge resulted in the loss of about $292 million through cross-chain message spoofing. The incident led to subsequent legal action against LayerZero and prompted a migration of rsETH bridging to Chainlink CCIP across chains such as Base, Mantle, Ink, Linea, and Optimism.
As of October 2026, Kelp DAO holds about $977M in total value locked. The protocol suits decentralized finance participants seeking automated EigenLayer rewards and multichain liquidity for their ETH. Users who focus on minimized smart-contract exposure, zero cross-chain bridging dependencies, or solo validation can choose native solo staking or standard liquid staking providers instead.
Specs
| Type | Liquid restaking |
|---|---|
| Stakeable assets | ETH, stETH, ETHx |
| Receipt token | rsETH |
| Chains | Ethereum |
| Audited | Yes |
| Restaking | Yes · unverified |
Not disclosed by the provider: KYC required, Protocol fee, Minimum stake, Withdrawal time, Node operators, Slashing cover, Typical reward rate.
Data from the provider's website and public sources. Fees and availability change; confirm on the official site before you sign up.
Key features
Liquid restaked receipt token
Minting rsETH allows depositors to retain liquidity across external DeFi protocols while their underlying assets remain restaked.
Multiple deposit assets
Accepts deposits in native ETH along with liquid staking tokens including Lido stETH and Stader ETHx.
Chainlink CCIP cross-chain bridging
Supports transfers of rsETH between Ethereum and layer-2 networks such as Base, Mantle, Ink, Linea, and Optimism.
High growth vaults
Offers structured yield vaults like hgETH and agETH that employ leveraged restaking strategies on lending protocols.
Point monetization with KEP
Issues KEP tokens to provide liquidity and trading functionality for accrued restaking points.
Inside Kelp DAO
rsETH
The core liquid restaking token representing deposited ETH, stETH, and ETHx restaked on EigenLayer.
KEP
A token that makes earned EigenLayer restaking points liquid and tradable in DeFi.
hgETH
A High Growth Vault product delivering yield strategies and rsETH upon redemption.
Kelp DAO screenshots
User reviews
No user reviews yet. Have you used Kelp DAO? Share your experience below.
Funding and investors
$9MTotal raised
1Round
26Investors
-
Private May 2024 $9MLD Laser DigitalCorporate VC Lead SL SCB LimitedVenture capital Lead AK Alex Karl SvanevikVenture capital AK Amrit KumarVenture capital AL Anthony LesoismeinVenture capital AC ArkStream CapitalVenture capital AV Avid3Venture capital BV Bankless VenturesVenture capital CC Cluster CapitalVenture capital CC Coinseeker.coVenture capital CC Cypher CapitalVenture capital DA DACMHedge fund DV DWF VenturesVenture capital DD Draper DragonVenture capital GS GSRCorporate VC HV HTX VenturesExchange ventures arm HY HypersphereVenture capital LV LongHash VenturesVenture capital MZ Marc ZellerVenture capital NC NOIA CapitalVenture capital SK Sam KazemianVenture capital SM Scott MooreVenture capital SD Side Door VenturesVenture capital TC Tulipa CapitalVenture capital VC ViaBTC CapitalVenture capital WS Winslow StrongVenture capital
FAQ
Who founded Kelp DAO?
Kelp DAO was founded in November 2023 by Amitej Gajjala and Dheeraj Borra, who previously co-founded Stader Labs. The protocol operates under the KernelDAO ecosystem.
What is rsETH?
rsETH is Kelp DAO's liquid restaked receipt token. It represents deposits of ETH, stETH, and ETHx restaked into networks like EigenLayer.
Has Kelp DAO experienced any security exploits?
Yes, on April 18, 2026, an exploit targeting the rsETH LayerZero bridge resulted in a loss of approximately $292 million due to cross-chain message spoofing. The protocol has since migrated bridge infrastructure to Chainlink CCIP.
Does Kelp DAO have a governance token?
Kelp DAO is part of the KernelDAO ecosystem, which held a Token Generation Event for its KERNEL token in April 2025. Kelp also introduced KEP to tokenize EigenLayer reward points.
What assets can you restake on Kelp DAO?
Users can deposit native ETH as well as liquid staking tokens including Lido's stETH and Stader's ETHx.
Latest from Kelp DAO on X
hgETH (High Growth Vault) update
UltraYield has decided to cease its role as the vault's strategy manager at 23:59 Singapore time on 18 October (15:59 UTC). Upshift, the vault's infrastructure partner since the inception of hgETH, will take over the management of the vault's operations for a seamless transition.
For holders:
• No action is needed. Your hgETH stays in your wallet.
• Withdrawals work as before: request on the vault page, and rsETH arrives in your wallet automatically after the 15 to 18 day redemption period.
Vault page: https://t.co/KIMXx42kwH
hgETH contract (Ethereum): 0xc824A08dB624942c5E5F330d56530cD1598859fD
UltraYield has decided to cease its role as the vault's strategy manager at 23:59 Singapore time on 18 October (15:59 UTC). Upshift, the vault's infrastructure partner since the inception of hgETH, will take over the management of the vault's operations for a seamless transition.
For holders:
• No action is needed. Your hgETH stays in your wallet.
• Withdrawals work as before: request on the vault page, and rsETH arrives in your wallet automatically after the 15 to 18 day redemption period.
Vault page: https://t.co/KIMXx42kwH
hgETH contract (Ethereum): 0xc824A08dB624942c5E5F330d56530cD1598859fD
We are excited to announce that the rsETH migration to @chainlink CCIP was completed on 5 October. rsETH now bridges between Ethereum and Base, Mantle, Ink, Linea and Optimism through CCIP.
$KUSD lends against trade. A company ships goods to a large buyer, the buyer pays weeks later, and the company needs the cash in between.
Some companies ask for more than their trade can support. When that happens, we offer a smaller loan that the trade can support, and the deal goes ahead
Some companies ask for more than their trade can support. When that happens, we offer a smaller loan that the trade can support, and the deal goes ahead
Today we filed a lawsuit against LayerZero and its co-founder, Bryan Pellegrino, to right the wrongs associated with the exploit of rsETH’s LayerZero bridge earlier this year. For more details, please refer to the statement below.
https://t.co/gPQTPeM0Zh
https://t.co/gPQTPeM0Zh
Recent public posts from @KelpDAO, shown as published. Not reviewed or endorsed by CryptoReview.
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