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Editorial policyKelp DAO is a liquid restaking protocol that issues rsETH — a token representing ETH restaked through EigenLayer. Users deposit ETH or LSTs, receive rsETH, and earn staking plus restaking rewards. Kelp's KERNEL token governs the protocol. In April 2026, a bridge exploit drained $292M in rsETH, causing a sector-wide TVL outflow and highlighting composability risks in restaking tokens used as collateral.
Kelp DAO issues rsETH — a liquid restaking token for EigenLayer — and gained global attention after a $292M bridge exploit in April 2026 that stress-tested DeFi's composability stack.
Market context
DeFiLlamaAs of 23 September 2026, What is Kelp DAO? rsETH Liquid Restaking Explained reports approximately $1.18B total value locked in the liquid restaking category across Ethereum.
Skip this What is Kelp DAO? rsETH Liquid Restaking Explained explainer if you wanted a first wallet setup or a CEX account. It covers how the protocol works and who it is not for. How-tos and comparisons are linked where they exist.
Kelp DAO is a multi-chain liquid restaking protocol that allows users to deposit ETH or liquid staking tokens and receive rsETH — a liquid restaking token earning both Ethereum staking rewards and EigenLayer AVS restaking yield. Kelp positions itself alongside Renzo and ether.fi in the liquid restaking token (LRT) category that dominated DeFi narratives in 2024–2025.
Kelp expanded beyond Ethereum to Layer 2 networks and alternative chains, with rsETH bridged across ecosystems for use as DeFi collateral — a composability choice that became central to the protocol's story when a bridge vulnerability was exploited in April 2026.
On April 18, 2026, an attacker exploited a vulnerability in KelpDAO's cross-chain bridge message verification, draining approximately $292M in rsETH — one of the largest DeFi exploits of the year. rsETH depegged sharply as holders rushed to exit, and contagion spread to other restaking tokens and lending protocols holding rsETH as collateral.
The incident became a case study in composability risk: restaking tokens used simultaneously as bridge collateral, lending collateral, and yield farm assets created correlated failure modes across the DeFi stack. KelpDAO paused affected bridge routes and worked with security firms on remediation.
FAQ
Kelp DAO is a liquid restaking protocol issuing rsETH — a token representing ETH restaked via EigenLayer with automatic reward accrual.
rsETH is Kelp's liquid restaking token. It represents a restaked ETH position and is usable in DeFi lending, DEXes, and yield strategies.
A bridge message verification flaw allowed forged withdrawal messages, draining $292M in rsETH in April 2026.
Bridge infrastructure was paused and remediated; users should verify current Kelp security audits and bridge status before depositing.
All three offer liquid restaking tokens (rsETH, ezETH, eETH) earning EigenLayer yield. They differ in custody model, token mechanics, and DeFi integrations.
Renzo is a liquid restaking protocol on Ethereum that issues ezETH — letting users earn Ethereum staking yield plus EigenLayer restaking rewards in a single composable token.
EigenLayer lets you restake ETH or LSTs to secure extra services (AVSs). Verdict-first guide on stacked slashing, why Lido-only staking is enough for most people, and who should not restake.
A $292 million bridge exploit on KelpDAO on April 18, 2026 sent shockwaves through DeFi, triggering a $13 billion TVL outflow across the ecosystem. Here is what happened, how it was exploited, and what the response revealed about DeFi's composability risk.