Kelp DAO is excited to build rsETH, a Liquid Restaked Token (LRT) designed for seamless liquidity and flexibility in DeFi. Let’s deep dive into all you need to know about rsETH.At its core, an LRT is a liquid token that provides liquidity to illiquid assets deposited into restaking platforms, such as EigenLayer. rsETH is already live on testnet. As we continue to build this out, here’s a quick primer on the tech that powers it.What is rsETH?
rsETH is a liquid restaked token that empowers users to receive Ethereum staking and restaking rewards while retaining liquidity and the ability to participate in DeFi.What powers rsETH?
The primary modules driving rsETH include the deposit pool, node delegator, reward market and withdrawal manager contracts.The deposit pool acts as a simplified vault allowing restakers to transfer their liquid staked tokens and receive rsETH tokens based on the current rsETH exchange rate. It simplifies the process for restakers by abstracting the complexity of rewards and validator delegation.The node delegator module manages the movement of the deposited liquid staked assets to contracts for each operator. Assets in each node delegator are delegated to one operator, thereby providing economic security to all nodes that an operator operates for different AVSes.Node delegators also claim rewards, engage in prescribed strategies for different rewards, thus automating the reward redemption process for restakers and enabling significant gas savings.The reward market offers various strategies for engaging different rewards. These decisions are driven by the DAO through governance. A reward market helps AVSes avoid undesired token activity while helping restakers obtain better returns. The reward market serves as the foundational layer for all rewards accrued through restaking.The Withdrawal Manager module assists rsETH holders in converting their rsETH tokens into a share of all assets managed by the protocol. Redeemers can expect toreceive a complex set of various rewards received by Node Delegators for delegating to operators subscribed to various AVSes.A high-level flowchart is provided in the illustration below.rsETH security roadmap
Security is of the utmost importance for a fundamental DeFi primitive like an LRT.The rsETH rollout will happen in the following phases:Audits:
rsETH will undergo rigorous audits by popular security auditors in the upcoming weeks.Testing:
Prior to the mainnet launch, rsETH will undergo extensive testnet testing to bootstrap the ecosystem.Bounties:
In line with the security theme, whitehats can review and verify our code, with the potential to earn bounties for finding bugs.What’s next?
In the coming weeks, we plan to share the following with the Ethereum community:rsETH litepaperrsETH roadmapKelp’s LRT contract audit reportsIncentives for early liquid restakersPotential airdropsConclusion
rsETH promises to unlock greater utility and capital efficiency for users. To stay updated, sign up for our mailing list and be the first to know about exclusive incentives. All announcements are made first on Kelp’s Twitter page. If you have any questions, hop onto our Discord.Until next time, explore rsETH on testnet.