In 2025, Ethereum's restaking world has grown significantly. Users want practical tools, not just fancy promises. That's where Kelp shines by offering rsETH, a token you can use almost anywhere, from lending platforms to Layer 2s.

With ~$11B locked in liquid restaking, proof of concept has never been stronger. Kelp is building carefully for users who want better rewards, fewer surprises, and real control. It's a system that works.

Liquid restaking has moved from early adoption to ecosystem integration. No longer a novelty, it's now a foundational piece of Ethereum's evolving reward stack. If Ethereum is the internet of value, then restaking is the network's "power grid." Liquid restaking lets you stay plugged in while moving around freely.

But with new protocols, shifting rates, and cross-chain plays, it's hard to keep track of it all. This is your clean window into the landscape; where we are now, what's working, and what to watch out for.

The landscape has big numbers and clear players

As of mid-2025, around $11 billion sits in liquid restaking protocols. That's a 5x jump from early 2024. The movement has outpaced even early LST growth.

Everybody brings a different thesis. Some lean into security. Others into liquidity. At Kelp, we've focused on what we consider most important, i.e. giving users useful rewards, not just theoretical reward rates.

We now hold the number 2 spot by TVL. But more importantly, our token (rsETH) works across more places than ever before, from lending to LPs to options vaults. In this game, integration is utility.

What do users really care about?

Most users aren't tracking protocol drama or tokenomics charts. They want three things, i.e. better rates, real usage, and risk they can understand.

Let's break that down.

Opportunities today

Best rewards right now

Liquid restaking rewards vary. At the time of writing, most established protocols offer reward rates between 3% to 4%, depending on the protocol and operators selected. Kelp's current rate hovers around 3.5%, reflecting a focus on sustainable rewards.

Can I actually use my token?

With rsETH, yes. It's live on Aave, Compound, Pendle, and more than 40 DeFi protocols. You can also deploy it on Layer 2s like Base, Arbitrum, and zkSync.

Think of rsETH like a tool that earns while you use it. You earn value by holding it, but you can also use it almost anywhere.

Cross-chain = Cross-function

Liquid restaking isn't chained to Ethereum L1 anymore. Protocols like Kelp are already bridging to new networks. rsETH works natively on zkSync and more to come.

New strategies to try

Users are depositing rsETH into:

• Pendle LPs (to lock in future rewards)

• Pre-deposit vaults (for boosted reward rate)

The toolbox is growing fast.

Risks to consider

Restaking isn't free money. It's more like high-performance driving; rewarding but with real physics underneath.

Has anyone been slashed?

Not yet. Major slashing events haven't hit the space, but we also agree it's still early. Protocols like Kelp mitigate risk by choosing well-audited operators and limiting exposure.

Security track record

Kelp's contracts are audited by industry leading auditors. Operator sets are vetted and transparent. Slashing insurance is on the roadmap.

Where things could go wrong

• Bridge risk when moving rsETH cross-chain

• Operator downtime affecting rewards

Restaking is still new territory. Even good maps don't make the terrain smooth.

The Kelp approach

We're not chasing every shiny object. We're building a resilient foundation.

At Kelp, we believe:

• Rewards should be usable

• Protocols should be accountable

• Users should be in control

The restaking layer isn't just about stacking rewards. It's about building a more secure and composable Ethereum. We're proud to be one of the few turning that vision into real tools.

Want to explore liquid restaking the right way?

Start at kerneldao.com/kelp/. Follow us @KelpDAO on twitter for the latest updates. Or ask us anything on telegram and discord, we're here to help decode the reward layer.