📝 Hello everyone, I am 𝟏𝟎, and welcome back to the #BlockchainDevelopmentHistory project research series. Today, we will focus on Kelp DAO.

Kelp DAO is a triple-yield re-staking protocol based on EigenLayer. It issues a liquidity token, rsETH, allowing assets that cannot easily flow (such as assets deposited in EigenLayer) to be traded.

👇👇👇

I. The Rise of Kelp DAO

The success of Kelp DAO is not accidental; it is a perfect combination of innovation and strategic vision. Its core highlight is the re-staking mechanism based on EigenLayer, providing users with triple yields: liquidity staking rewards, re-staking rewards, and DeFi partner rewards. This not only offers stable returns to users but also enhances capital efficiency through collaboration with over 50 DeFi projects.

The staking mechanism within the Ethereum ecosystem has always attracted attention, particularly the re-staking concept of EigenLayer, which breaks through the limitations of traditional staking. Traditional staking is like locking money in a safe, where you can only earn fixed interest. In contrast, EigenLayer's re-staking is more like allowing you to work part-time with your assets while they are locked. Your assets are no longer idle; they participate in the security maintenance of other projects, contributing to the overall network security and earning corresponding rewards.

Kelp DAO not only supports staking for ETH and various LSTs but also facilitates cross-chain operations. It acts like a toll booth on the highway of the DeFi world, allowing you to quickly and conveniently re-stake through Kelp DAO, no matter which road (different blockchain networks) you come from.

For example, if you have some ETH on Arbitrum and want to participate in re-staking on the Ethereum mainnet, the traditional approach requires you to first cross-chain the ETH to the Ethereum mainnet. This not only incurs high gas fees but also faces issues such as transaction slippage. However, with Kelp DAO, you can directly re-stake on Arbitrum without cumbersome cross-chain operations, significantly saving time and cost.

II. Kelp DAO's Strategic Vision

Although Kelp DAO's products are technically part of the DeFi space, its strategic vision extends beyond that. In fact, they have long begun laying out plans in the traditional finance sector. In May 2024, they successfully completed a $9 million private placement, attracting investments from traditional finance giants like SCB Limited from the Bahamas and Laser Digital from Nomura Group.

Kelp DAO co-founder Amitej Gajjala also mentioned that collaboration with Laser Digital will open up more opportunities for them in traditional asset management and family offices. In the future, Kelp DAO has the potential to become the preferred partner for these traditional investors in the re-staking field.

III. Kelp DAO's Dual Protection

Kelp DAO not only focuses on user returns but also places a high value on security. Even though the systemic risks of re-staking are relatively low, Kelp DAO remains vigilant against potential risks, especially events like slashing, which is akin to a bank suddenly announcing it will deduct part of your deposit as a penalty. What has it done to prevent such situations?

Kelp DAO ensures stability by repeatedly inspecting the platform in cooperation with top auditing firms. It has also set up a multi-level monitoring system, similar to bank surveillance cameras, to continuously monitor the platform's operation. If any abnormal conditions are detected, it immediately issues an alert and takes action.

In the core competition of re-staking, Kelp DAO's unique advantage lies not only in the liquidity layer it provides but also in its ability to operate seamlessly across multiple Layer 2s and mainnets. By optimizing capital allocation and reducing transaction costs, Kelp DAO offers users a more efficient and low-cost staking experience.

IV. Future Outlook of Kelp DAO

Kelp DAO's ambition is not limited to Ethereum. Its plan is to extend the re-staking mechanism to multiple mainstream blockchains, including BNB Chain, Solana, and other major blockchains.

For instance, on Solana, users can leverage Kelp DAO's re-staking mechanism to invest tokens in multiple protocols, attaining higher yields that surpass traditional staking methods. On BNB Chain, Kelp's multi-chain integration strategy allows users to enjoy lower fees and achieve flexible cross-chain operations.

On the technical side, Kelp DAO is actively developing cross-ecosystem liquidity solutions. The collaboration with Symbiotic promotes efficient capital flow between different chains and provides continuous liquidity for Uniswap incentive pools, ensuring that users can enjoy depth and liquidity advantages when trading on any platform.

In summary, Kelp DAO has ambitious goals; it aims to create an interconnected financial world that allows everyone to participate in the blockchain space more conveniently and efficiently.

V. Conclusion

If you find the content helpful, please like, comment, and follow to support us. Thank you!!!