3 min read

Luganodes X Kelp DAO : Powering Liquid Restaking

In the LRT era.

Cover Image

Published on

23 May, 2024

Introduction

As the EigenLayer disruption continues to unfold, Liquid Restaking Token (LRT) providers are making significant strides. Among them, Kelp DAO has notably established itself with its innovative solutions. To date, Kelp DAO has achieved a remarkable milestone with over 250k+ ETH restaked by 29,450 unique depositors. Consequently, as a major restaking infrastructure provider, Luganodes has now partnered with Kelp DAO, joining its roster of node operators.

EigenLayer introduces the concept of re-staking, where stakers can opt-in via their AVS Operators to earn additional rewards from their staked native ETH or Liquid Staking Tokens (LSTs). This process benefits stakers, operators, and developers alike. Specifically, developers can leverage the pre-existing ETH security pool, thus bypassing the need to bootstrap their own security and create their own token. Instead, they can set up an AVS (Actively Validated Service) and get Ethereum’s community of operators and their stakers to secure their application, thereby creating a win-win scenario for all parties involved.

Kelp DAO - Liquid Restaking

Kelp DAO, founded by Amitej G and Dheeraj B (creators of Stader Labs), is focused on developing Liquid Restaking Solutions for public blockchain networks. The team has built rsETH, a Liquid Restaked Token (LRT) for Ethereum on EigenLayer.

How rsETH Functions

Restakers stake their ETH/LSTs to mint rsETH tokens, representing fractional ownership of the underlying assets. The rsETH contracts distribute the deposited tokens among various node operators partnered with Kelp DAO. Restakers can swap rsETH tokens for other tokens on AMMs for immediate liquidity or redeem underlying assets through rsETH contracts, further leveraging their rsETH tokens in DeFi.

Kelp DAO rsETH

Advantages of rsETH

  • For Restakers: Provides liquidity to restaked ETH/LST, simplifies the identification of services and validators, and aids in managing restaking rewards.

  • For AVSs: Reduces efforts to partner with operators and establish security, and helps manage emissions on rewards.

  • For Operators: Eases the process of securing restakers and restaked assets, and managing rewards from restaking.

Luganodes X Kelp DAO

Kelp DAO requires top-tier restaking infrastructure for EigenLayer, which has led to a partnership with Luganodes. Luganodes provides institutional-grade restaking services and is now one of the primary node operators for the Kelp DAO protocol. With Luganodes’ close ties with the EigenLayer restaking world, and Kelp DAO being one of the leading LRT providers, this partnership will undoubtedly enrich both companies and the greater restaking ecosystem.

Conclusion

Luganodes continues to provide its infrastructural expertise in staking, restaking, and node operation. The partnership with Kelp DAO is yet another foray into providing institutional-grade infrastructure for LRT providers. With this partnership and other projects, Luganodes has cemented its place as a key part of the EigenLayer ecosystem.

About Luganodes

Luganodes is a world-class, Swiss-operated, non-custodial blockchain infrastructure provider that has rapidly gained recognition in the industry for offering institutional-grade services. It was born out of the Lugano Plan B Program, an initiative driven by Tether and the City of Lugano. Luganodes maintains an exceptional 99.9% uptime with round-the-clock monitoring by SRE experts. With support for 40+ PoS networks, it ranks among the top validators on Polygon, Polkadot, Sui, and Tron. Luganodes prioritizes security and compliance, holding the distinction of being one of the first staking providers to adhere to all SOC 2 Type II, GDPR, and ISO 27001 standards as well as offering Chainproof insurance to institutional clients.

Line pattern
© 2024 Luganodes | All rights reserved