[Temp Check] Add wrsETH Markets to Moonwell on Base and Optimism

• Token Asset Name -

  • wrsETH

• A description of the project and the token -

  • KelpDAO (https://www.kelpdao.xyz/restake/) is one of the largest liquid restaking protocol built on top of the Eigen Layer. Restakers on Kelp get access to multiple benefits like restaking rewards, staking rewards, and DeFi yields.

• Latest stats:

  • USD 600 Mn+ (~253k Eth) TVL

  • 50K restakers onboarded

  • Live across Ethereum mainnet and 9 L2s such as Base, Arbitrum, Optimism, Scroll, Linea etc.

  • Withdrawals are enabled on Kelp and rsETH holders can unstake rsETH for any of the LSTs and ETH on KelpDAO on Ethereum

  • Bridging of rsETH across L2s is facilitated by infrastructure by LayerZero

  • KelpDAO has undergone multiple security audits by top-tier audit firms including Sigma Prime, Code4rena, and MixBytes. More about KelpDAO’s security here: Kelp DAO Audit reports

• Benefits to Moonwell Community

  • From Moonwell’s perspective, any new asset is a source of additional revenue and expands the ecosystem as a whole. LRTs are a great use case for Moonwell as it is one of the fastest growing ecosystems.

  • With wrsETH being one of the top LRTs, integrating it as a collateral asset will create new demand on Moonwell. This will be beneficial for both Moonwell and Kelp. In addition, wrsETH depositors will accumulate additional Kelp miles and EigenLayer points.

• Use cases for wrsETH market on Moonwell

  • Having wrsETH on Moonwell will allow users to earn Kelp Miles and Eigenlayer points while supplying and borrowing against wrsETH.

• Resources (Website, Social Media Links, and docs)

  • Website: https://kelpdao.xyz/restake/
  • Documentation: Introduction | Kelp
  • Audits: Audits | Kelp
  • Discord: Please use the link on the forum, unable to add it here
  • Twitter: Kelp DAO (@KelpDAO) / X

• The proposal author’s contact information

  • Proposer - Aditya Deorukhkar
  • Role - DeFi & Partnerships team member, KelpDAO
  • Email - aditya@kelpdao.xyz
  • Telegram - @Hedged_Adi

Market Risk Assessment

• Market cap of the token
  • 354 wrsETH on Base - (Basescan page)
  • 250k+ rsETH on Ethereum Mainnet - (Etherscan page)
  • 544 wrsETH on Optimism - (Optimistic scanner page)
• Total supply
  • 354 wrsETH on Base - (Basescan page)
  • 247k+ rsETH on Ethereum Mainnet - (Etherscan page)
  • 544 wrsETH on Optimism - (Optimistic scanner page)
• The largest central and decentralized exchanges where the token is listed and its respective liquidity
  • Aerodrome on Base - wrsETH pools (CL & AMM) - $2.2Mn TVL (0xA24382874A6FD59de45BbccFa160488647514c28)
  • On Ethereum Mainnet -
    • Total DeFi TVL $50Mn+
    • Pools on Balancer, Uniswap, Curve and more
  • Optimism -
    • Balancer - wrsETH<>WETH pool - link
    • Velodrome - wrsETH<>WETH pool - link
• Emission schedule - NA

Decentralization

• List of rsETH Holders on Mainnet
• List of wrsETH holders on Base
• List of wrsETH holders on Optimism

Codebase & On-chain Activity

• Kelp’s Docs - https://kelp.gitbook.io/kelp/rseth-smart-contracts
• wrsETH on Base - https://basescan.org/address/0xEDfa23602D0EC14714057867A78d01e94176BEA0
  • Age of the token - 4 Months old on Base, 9 months on Ethereum mainnet,
  • 20K+ Transactions on Base so far with wrsETH

Security

• Audits: Kelp’s smart contracts are audited by Sigma Prime, MixBytes, and Code4rena-
  • Sigma Prime Report: https://kelpdao.xyz/audits/smartcontracts/SigmaPrime.pdf
  • MixBytes: https://kelpdao.xyz/audits/smartcontracts/mixbytes.pdf
  • Code4rena: https://code4rena.com/reports/2023-11-kelp
• Does the project have an active bug bounty program?* - Kelp has partnered with Immunify to create a $250K Bug bounty program - link
• Provide emergency contacts with their estimated response time/availability
  • On TG - @saurabhj016, @galacticminter @Hedged_Adi - within an hour

Oracle Assessment

• We are working with ChainLink for an Oracle on Base -
  • RSETH / ETH - 0xd7221b10FBBC1e1ba95Fd0B4D031C15f7F365296
  • rsETH / ETH Exchange Rate - 0x99DAf760d2CFB770cc17e883dF45454FE421616b
• On Optimism with ChainLink as well-
  • RSETH/ETH - 0x03fe94a215E3842deD931769F913d93FF33d0051
• Yes the asset is a wrapped version of rsETH

Average Daily Trading Volume:

1. wrsETH on Base - Avg Daily trading volume per day - $8.8K/day (Per day average based on last 7 days - DeXScreener)
2. wrsETH on Optimism - Avg Daily trading volume per day - $20K/day (Per day average based on last 7 days - DeXScreener)

Top 10 Token Holders: The post does not provide a list of the top 10 token holders, the percentage held by each, and tags if known.

1. List of top 10 wrsETH holders on Base
2. List of top 10 wrsETH holders on Optimism

Privileged Roles:

• Timelock proposer - https://app.safe.global/settings/setup?safe=eth:0xb3696a817D01C8623E66D156B6798291fa10a46d

• Kelp Manager - https://app.safe.global/home?safe=eth:0xCbcdd778AA25476F203814214dD3E9b9c46829A1

• operators -

  • 0x7AAd74b7f0d60D5867B59dbD377a71783425af47,
  • 0xF2099c4783921f44Ac988B67e743DAeFd4A00efd,
  • 0xa7cDC32Cb1cc6E705C9F386441F0B1f6df44a963

None of the privileged roles have custody of user funds at any point.

The timelock proposer is a community multisig responsible for upgrading contracts after a 10-day timelock delay. This proposer has doxxed signers from the broader community, not just Kelp.

Manager is responsible for changing configurations of contracts. This includes the frequency with which staking happens etc.

Operators are responsible for operations at a smart contract level. This include making calls to auto-compound rewards, stake ETH, process withdrawals etc-

Pausability

All Kelp contracts are pausable by the manager multisig. This is done so the team can respond to emergencies if any. However, it is only the Timelock Proposer that can unpause the contracts. This means that the team can only pause the contracts to prevent any damage etc. The resumption can only happen after the community leaders come together and agree it's safe to resume the protocol. There is no blacklisting mechanism of any sort at Kelp.

Upgradability

As mentioned above, only the timelock contract has the power to upgrade the contracts. The timelock delay is 10 days and the proposer is the community multisig.

Chainlink Oracle Price Feed

Base -

RSETH / ETH - 0xd7221b10FBBC1e1ba95Fd0B4D031C15f7F365296

rsETH / ETH Exchange Rate - 0x99DAf760d2CFB770cc17e883dF45454FE421616b

Optimism -

RSETH / ETH - 0x03fe94a215E3842deD931769F913d93FF33d0051

Depeg Events

There is no specific exclusive event for depegging. The Llama Risk Report covers some risks that apply to most staking pools. You can find the report here

Collateral Risk Assessment - Kelp DAO Restaked ETH (rsETH) - Llama Risk