KelpDAO says rsETH recovery completed as backing returns above 100%

KelpDAO said it has completed the operational phase of its rsETH recovery plan. This comes after transferring the final tranche of 20,373.72 rsETH into the protocol’s OFT adapter. It marked the latest step in restoring confidence around the liquid restaking asset’s cross-chain backing infrastructure.

In an update published on 25 May, KelpDAO said the transfer finalized a broader refill process that saw approximately 116,000 rsETH replenished into the rsETH OFT adapter over the last two weeks with support from Aave.

The protocol added that minting, redemption, and reward operations have been functioning normally since the system resumed operations following the disruption.

Dashboard shows backing ratio above 100%

KelpDAO also pointed users to its live rsETH dashboard, which currently shows:

• a 100.01% ETH backing ratio,
• and full bridge lockbox coverage across both LayerZero and Chainlink infrastructure.

The figures are intended to reinforce the protocol’s claim that rsETH has remained fully backed since the system was unpaused.

The dashboard update comes as liquid staking and restaking protocols continue facing heightened scrutiny across DeFi following multiple bridge, custody, and infrastructure-related incidents over the past year.

Cross-chain collateral integrity becomes central issue

The recovery process centered around the rsETH OFT adapter, which plays a key role in managing cross-chain liquidity and token movement across supported networks.

By replenishing the adapter and restoring bridge coverage metrics to 100%, KelpDAO appears to be focusing heavily on restoring confidence in the protocol’s solvency and redemption reliability.

Aave’s involvement in the refill process also highlights the increasingly interconnected nature of major DeFi protocols during periods of operational stress.

Recovery efforts move from operations to confidence rebuilding

KelpDAO has described the latest transfer as the end of the operational recovery phase. However, the broader challenge may now shift toward rebuilding user confidence after the disruption.

Recent months have seen investors become increasingly sensitive to:

• bridge security,
• backing transparency,
• and solvency concerns across restaking and liquid staking ecosystems.

Protocols have responded by placing greater emphasis on real-time reserve dashboards, proof-of-backing systems, and publicly trackable recovery wallets.

Final Summary

• KelpDAO said it completed the operational phase of its rsETH recovery after transferring the final 20,373.72 rsETH tranche into the OFT adapter.
• The protocol’s dashboard currently shows a 100.01% ETH backing ratio and full bridge lockbox coverage.