Restaking Protocol Kelp DAO Brings Liquidity to EigenLayer Points
Summary
Kelp DAO, the third-largest liquid restaking protocol, has introduced the KEP token, enabling users to trade illiquid EigenLayer points/rewards. EigenLayer, which launched last year, allows ether stakers to restake their coins, thereby securing the blockchain and earning rewards. Kelp DAO and others act as intermediaries between users and EigenLayer, accepting deposits and restaking them with EigenLayer. Depositors earn liquid restaking tokens that can be traded. Kelp DAO's new offering addresses the issue of EigenLayer points not being liquid and unable to generate additional yield. All EigenLayer points earned by Kelp DAO will be distributed proportionally to rsETH holders in the form of $KEP tokens.
