KelpDAO, the protocol behind the liquid restaking token rsETH, has announced that the recovery of rsETH is complete. Backing now stands above 100%. The final stage involved replenishing the OFT adapter, a cross-chain bridge component that had caused a temporary shortfall.
Final Stage of the OFT Adapter Refill
The recovery process focused on refilling the OFT adapter, which facilitates cross-chain transfers of rsETH. With this final refill, all outstanding rsETH tokens are now fully backed by underlying assets. KelpDAO stated that the recovery is complete and the backing ratio exceeds 100%. The protocol did not disclose the exact amount of assets used, but the refill covered any shortfall entirely.
Full Backing Restored for rsETH
RsETH is a liquid restaking token that lets holders earn yields from staked ETH and restaking on EigenLayer. A backing shortfall can cause the token to lose its peg and expose holders to losses. With backing above 100%, that risk is gone. The announcement brings certainty to users who rely on rsETH for their yield strategies.
What This Means for DeFi Users
The restaking sector has grown quickly, and any backing issue can shake confidence. KelpDAO's successful recovery shows the protocol can address problems efficiently. The OFT adapter refill was a critical step, and its completion restores the token's collateral integrity. For rsETH holders, the token is now fully backed and can be traded or redeemed normally.
KelpDAO has not indicated any further adjustments. The protocol remains operational, and the team's focus now is likely on maintaining the backing level and ensuring the adapter functions smoothly. Users can check the current backing ratio on KelpDAO's dashboard.
