Liquid resttaking protocol Kelp has opened claims for the KEP token, giving users access to a tokenized version of EigenLayer reward points.
Kelp has 156 million KEP tokens to date – with 10 million of these tokens claimed by users. Kelp data shows. This gives these tokens a diluted market cap of $21 million at a price of $0.14 per token.
This development comes in the context of growing interest in liquid asset withdrawals, with the total value captured on leading platforms having exceeded $4 billion. Kelp itself has a total amount of more than $600 million.
Understanding the resumption and resumption of fluids
EigenLayer’s strategy involves leveraging the economic security of ETH by accepting native ETH – which can be instantly redeployed by Ethereum validators – and liquid staked ETH, or liquid staking protocols. This can then be used to secure other protocols, although this feature has not yet gone live. This is called retaking.
Meanwhile, the idea behind the liquid asset withdrawal offered by Kelp (and others like EtherFi and Renzo) is that it allows ETH holders – who own native or sometimes LST tokens – to invest and redeploy on Own without losing access to the underlying capital. (Hence the term ‘liquid’.)
EigenLayer users earn points for their ether deposits, increasing the chance of receiving a token from EigenLayer. Liquid Redraw users keep their capital liquid while also preserving their Eigen points.
Kelp has converted these points into a token, opening up a separate on-chain market and a whole new cryptocurrency niche. Other points trading options exist, such as Whales Market and Pendle, but they have yet to convert the points into tokens.
