KelpDAO Transfers Final rsETH to LayerZero Lockbox, Recovery Phase Ends

KelpDAO announced on May 25 that it completed the operational phase of its rsETH recovery plan by transferring a final tranche of 20,373.72 rsETH into the protocol's Omnichain Fungible Token (OFT) adapter. This marks the culmination of a multi-week effort that returned roughly 116,000 rsETH to the adapter over two weeks, supported by Aave. The rsETH OFT adapter manages cross-chain liquidity via LayerZero and Chainlink bridge protocols. The protocol now shows a 100.01% ETH backing ratio and full bridge lockbox coverage across both bridge infrastructures. Minting, redemption, and reward operations are functioning normally. Aave's involvement underscores the interconnectedness of major DeFi protocols, as rsETH is used as collateral within Aave markets. KelpDAO used a real-time dashboard to communicate recovery status, reflecting a trend toward on-chain transparency tools. The recovery occurs amid heightened scrutiny of liquid staking and restaking sectors due to past bridge exploits and custody failures. KelpDAO characterized the transfer as the end of the operational recovery phase, shifting focus to rebuilding user trust.