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Reviews/Kelp DAO

Kelp DAO

Van Thanh Le

Mar 11 2024

7.7 / 10

Summary

Kelp DAO Review: Maximize your Ethereum rewards. Earn on staked ETH while keeping access to your funds.

Pros

plus

Multi-crypto support

plus

Competitive Rewards

plus

User-friendly interface

plus

Liquid Staking Innovation

Cons

plus

Limited Withdrawals

plus

Gas Costs Consideration

Kelp DAO Review Scores

7.7

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Overall

Information

8

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Feature Set and Innovation

Information

8

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Security Measures

Information

8

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Performance and Returns

Information

7

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User Experience and Interface

Information

8

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Ecosystem Integration

Information

7

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User Support and Engagement

Information

An In-Depth Review of Kelp DAO

Ever wondered how to earn double duty on your staked Ethereum? Look no further than Kelp DAO, a revolutionary platform in the ETH restaking space. Kelp DAO builds upon EigenLayer, a powerful protocol that unlocks the security of Ethereum for other blockchains. 

But Kelp DAO takes it a step further. It offers a liquid restaking solution through its token, rsETH, allowing you to keep earning on your staked ETH while retaining instant access to your funds. Intrigued? Dive deeper into this review to see if Kelp DAO is the key to maximizing your Ethereum holdings.

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Key Takeaways

Exploring Kelp DAO, a significant platform in the crypto world. Here's the meat of the matter, distilled into bullet points for those keen on cutting through the fluff and getting to the core insights:

  • Innovative Liquid Staking: Kelp DAO introduces rsETH, revolutionizing ETH staking by allowing you to earn yields on staked ETH while retaining access to your funds.
  • Flexible Token Support: Welcomes a variety of players with open arms—ETH, stETH, sfrxETH, and ETHx holders, offering diverse staking strategies.
  • KEP Token Utility: Breaks new ground with the KEP token, enhancing liquidity and offering a fresh perspective on asset management.
  • Efficient Reward Distribution: Automates restaking and distributes all earned EigenLayer points as KEP tokens among rsETH holders, ensuring a fair rewards system.
  • User-Friendly Onboarding: A straightforward process to connect your crypto wallet and start staking, accompanied by a helpful dashboard to track rewards.
  • Competitive Performance: Boasts an APY of 3.09%, slightly higher than competitors, with over $763.62M in TVL and 15,000+ rsETH holders.
  • No-Fee Policy: Attracts users by eliminating LST deposit fees, making restaking more accessible and enhancing overall returns.
  • Robust Security: Proactive in securing the platform with multiple audits, particularly a notable one by Code4rena in November 2023, emphasizing ongoing risk management.
  • Vibrant Community Support: Maintains an active Discord channel for real-time assistance, reflecting their commitment to a smooth user experience.
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Kelp DAO’s Pros and Cons

Pros

  • Versatile Token Support: Flexibility for users with a variety of staking strategies thanks to support for multiple tokens (e.g., ETH, stETH).
  • Innovative Liquid Staking Solutions: Enhances liquidity and offers additional yield opportunities through liquid staking.
  • Efficient Reward Distribution: Fair and transparent allocation of rewards among participants, promoting an equitable ecosystem.
  • User-Friendly Experience and Support: Streamlined processes and a supportive community enhance user engagement and satisfaction.

Cons

  • Limited Withdrawal Options: Current limitations on withdrawals may affect liquidity and user flexibility.
  • Navigating Gas Costs and Timing: Automated features aim to mitigate these, but they remain considerations for users.

1. Core Features of Kelp DAO

Kelp DAO shines as a beacon in the liquid restaking arena, thanks to its innovative founders, Amitej G and Dheeraj B, of Stader Labs fame. This protocol transforms Ethereum staking by offering a "liquid staking" approach where users wrap staked ETH derivatives for extra yield opportunities. Here's the scoop on Kelp DAO's standout features:

  • Supported Tokens: It's all about flexibility here. Kelp DAO rolls out the red carpet for ETH, stETH, sfrxETH, and ETHx enthusiasts, making it a playground for various staking strategies.
  • Liquid Staking: By introducing rsETH, Kelp DAO allows depositors to dip into the world of liquid staking, unlocking additional yield avenues on staked assets.
  • KEP Token Innovation: Enter the KEP token, a game-changer designed to liquefy the stagnant waters of EigenLayer points. This strategy is a win-win, enhancing liquidity and offering a fresh take on asset management.
  • Unpause Queue: Ever feel like you're always a step behind? Kelp's Unpause Queue puts an end to that, automating restaking ahead of EigenLayer's windows. This means more rewards and fewer headaches over timing and gas costs.
  • Reward Distribution: In a generous move, Kelp DAO distributes all earned EigenLayer points as KEP tokens among rsETH holders, ensuring a fair share of the pie for everyone.
  • DeFi Integration: Users participating in DeFi with rsETH can earn Kelp Miles and EigenLayer points, along with additional yields from DeFi opportunities. Kelp incentivizes with boosted Kelp Miles, providing extra benefits. Current DeFi integrations include Pendle, Uniswap, Curve, and Balancer, offering various opportunities and benefits for participants.
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2. How to Get Started with Kelp DAO

Intrigued by Kelp DAO's innovative staking options and the potential for earning Kelp Miles and EigenLayer (EL) Points? Getting started is a breeze! Let's dive in.

  1. Connect your Crypto Wallet: Head over to KelpDAO's dapp (decentralized application) and connect your preferred crypto wallet. Popular choices include MetaMask or Trust Wallet.
  2. Choose your Stake: Decide how much sfrxETH (or other supported assets) you'd like to stake. Remember, you can always add more later to boost your potential rewards.
  3. Approve and Stake: Review the transaction details carefully, then hit approve to authorize the staking process. KelpDAO will guide you through the steps, making it a smooth and user-friendly experience.
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Your adventure doesn't stop at staking. Swing by the Dashboard to track your Kelp Miles and EL Restaked Points. These update hourly, so if your screen's looking empty, hang tight. This dashboard is your window into how your contributions are flourishing in real-time. Welcome to Kelp DAO - where your crypto journey takes a leap forward!

3. Performance and Returns

Kelp DAO shines as a formidable player in the Ethereum liquid restaking arena, with an APY of 3.09% over a 15-day moving average. This metric slightly edges out other protocols hovering just above 3% APR. Understanding the distinction between APR and APY is crucial; APY's compounding effect positions Kelp DAO favorably against platforms offering only APR rates.

As the third-largest liquid restaking protocol, Kelp DAO's impressive stats include over $763.62M in total value locked (TVL), with 189,545 ETH restaked and a community of 15,000+ rsETH holders. Remarkably, more than 10% of all EigenLayer deposits during the last cap raise were funneled through Kelp in the first 15 days post-launch. 

This rapid adoption underscores the platform's strength and community trust, further amplified by a robust growth to over 20,000 members and strategic partnerships with key DeFi players like Omni and WitnessChain.

The platform's no-fee policy for LST deposits enhances its appeal, promoting accessible restaking without the deterrent of extra charges. This approach, combined with partnerships and developed DeFi pools, offers rsETH holders not just enhanced rewards but a broad spectrum of liquidity options across leading exchanges.

4. Security and Trustworthiness

Kelp DAO takes security seriously, as evidenced by their proactive approach to audits and risk management. Their smart contract system, written in Solidity, underwent a recent audit by Code4rena in November 2023, with an impressive 194 wardens contributing reports – a testament to their commitment to transparency. 

This focus on security extends beyond the initial audit. Kelp DAO's architecture, particularly the rsETH contracts, utilizes a one-way information flow, preventing unauthorized actions by Delegated Contracts (NDCs) and bolstering overall platform security.

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Let me tell you, as someone who's been involved in the crypto space for a while, seeing a platform with multiple audits and a focus on ongoing security is refreshing. It gives me peace of mind knowing they're taking steps to mitigate risks.

While Kelp DAO boasts a clean audit history so far, it's important to remember that security is an ongoing process. Staying vigilant and adapting to new threats is crucial. That's why I'm keeping an eye on any future developments or independent security research to ensure Kelp DAO maintains this high standard.

5. User Experience and Support

Kelp DAO prioritizes a smooth user experience. Their interface streamlines restaking, with automated deposits significantly improving efficiency. While withdrawals are coming in March 2024, current features like stETH deposits showcase a user-friendly approach. 

Their active Discord community, with responsive moderators and helpful members, allows for quick resolution of most questions. As someone who frequently relies on online communities, I find this focus on accessibility refreshing.

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Here's when I searched for the estimated withdrawal time.

Conclusion: Should You Stake with Kelp DAO?

Kelp DAO unlocks lucrative returns and user-friendly staking for your ETH. With impressive security measures and a growing community, it's a compelling option for yield-hungry crypto enthusiasts. However, the lack of current withdrawals might deter some. Consider Kelp DAO if you prioritize high APY and a user-friendly platform, but be prepared to wait for withdrawal functionality.

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