weETH vs rsETH: EtherFi vs Kelp Liquid Restaking 2026
EtherFi's weETH and Kelp's rsETH are two leading liquid restaking tokens competing for dominance in the rapidly growing LRT market. This comparison examines their approaches to restaking, yield generation, and ecosystem integration.
Understanding Liquid Restaking
Liquid restaking tokens (LRTs) combine liquid staking with EigenLayer restaking. Users deposit ETH and receive liquid tokens that earn both Ethereum staking rewards and EigenLayer AVS (Actively Validated Services) rewards. LRTs solve the liquidity problem of direct EigenLayer deposits.
Protocol Overview
weETH (EtherFi) is the wrapped version of eETH, EtherFi's liquid restaking token. EtherFi pioneered the LRT space and maintains the largest TVL. The protocol emphasizes decentralization with distributed validator technology and non-custodial staking. rsETH (Kelp DAO) is Kelp's liquid restaking token that accepts multiple LSTs as collateral (stETH, ETHx, etc.). This multi-asset approach provides flexibility but adds complexity. Kelp focuses on maximizing restaking yields.Yield Mechanics
weETH Yield Stack
- Base ETH Staking: ~3.5-4% APY
- EigenLayer Restaking: Variable AVS rewards
- EtherFi Points: Protocol-specific incentives
- Potential Airdrops: Future token distributions
Total effective yield can reach 6-10%+ depending on AVS rewards and point valuations.
rsETH Yield Stack
- Base LST Yield: Varies by underlying (stETH, ETHx)
- EigenLayer Rewards: AVS payments
- Kelp Miles: Points program
- Multiple LST Exposure: Diversified underlying yield
Similar total yield potential with more complexity in underlying assets.
Collateral Models
weETH Single-Asset Model
- Native ETH deposits only
- Straightforward value proposition
- EtherFi manages full stack
- Clean, simple tokenomics
rsETH Multi-Asset Model
- Accepts stETH, ETHx, sfrxETH
- Diversified LST exposure
- Complex underlying composition
- Flexibility in deposit options
Operator and AVS Strategy
EtherFi Approach
- Curated operator selection
- Focus on blue-chip AVSs
- Conservative risk management
- Transparent operator metrics
Kelp Approach
- Multi-strategy AVS exposure
- Yield optimization focus
- Broader AVS coverage
- Aggressive yield seeking
DeFi Integration
weETH Integration
- Accepted on Aave, Pendle, Morpho
- Deep liquidity on DEXs
- Widely used as collateral
- Strong lending market presence
rsETH Integration
- Growing protocol acceptance
- Pendle integration
- Expanding partnerships
- Catching up to weETH
Points and Incentive Programs
EtherFi Points
- Long-running loyalty program
- Converts to future governance tokens
- Tiered based on activity
- Established track record
Kelp Miles
- Competitive points program
- Aggressive early incentives
- Partner ecosystem rewards
- Newer but growing
Risk Comparison
weETH Risks
- EigenLayer smart contract exposure
- AVS slashing risk
- Single underlying asset
- Protocol concentration
rsETH Risks
- Multi-asset complexity
- Multiple smart contract layers
- Underlying LST risks compound
- Newer protocol (less tested)
Who Should Choose Which
Choose weETH When:
- You want the market leader
- Simplicity is valued
- DeFi collateral use is priority
- You prefer single-asset clarity
Choose rsETH When:
- You want LST flexibility
- Diversified underlying appeals
- You're optimizing for points
- You prefer Kelp's AVS strategy
Conclusion
weETH leads the LRT market with the deepest integrations and simplest model. It's the default choice for most users entering liquid restaking. rsETH offers a compelling alternative with multi-LST flexibility and competitive incentives. Its different approach may suit users with existing LST positions.For pure restaking exposure, weETH's market position makes it the safer choice. RsETH provides an alternative for users wanting LST diversification.
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