Restaking ETH with Kelp DAO

Transcript

GM good morning welcome to the milk Road show The Daily crypto show that hits you like the alarm clock on a Monday morning but in a good way I'm your host Jay Hamilton and today we're talking about how you can get extra yield on your eth here to walk us through is kelp co-founder Amit now I'm going to assume that most of you listening to this episode stake your eth but I think I might be wrong assumption I mean I assume that because who wouldn't want an extra 3% boost on your eth but when we look at the stats only 28% of all eth is staked so I'm actually guessing that a lot of

you listening to this episode don't stake your eth if that's the case please let us know in the comments so we know whether or not you do stake your eth and we can make sure we get you guys more information on how to do that but that's exactly what we're going to talk about today is there's this talk of staking and restak and liquid staking liquid reaking and all these all these words you might understand them whether you do or whether you don't if I told you that you could get an additional 20 to 30% yield on your eth and do it in a safe and simple way not with going deep into di5 but in a way where it's basically managed for you you'd probably be crazy not to do that so today we're going to

walk you through the steps of what are the options of how you can get extra yield on your eth how do you actually do it how does it work and in order to do that we've partnered with kelp to make this episode possible and make sure that you guys have this great opportunity to get more yield on your eth Amit welcome to milk Road show thank you thanks a lot for having me here today J uh pleasure to be interacting with you likewise okay let's start at the beginning with simple question let's say I've got some eth and I'm not doing anything with it right now what would you recommend to me how would you help me think through the ways that

I can get more yield on that e interesting question and lot of lots of my friends ask me the same question uh who are just getting into crypto and buying ethereum or Bitcoin let me ask you a question back what do you want out of your e let's let's take two two camps here one camp let's say I I want simple savings account returns you know I want I want a little bit of return but I don't really want to do much work and I want I don't want much risk either and then I would love to take a second approach that's maybe more I'm willing to take a little bit more risk uh but I don't want to go deep into Defi and and

those listening that are deep in defi uh there is more advanced ways to do what we're going to talk about today but I want to I would love to just break it down in those two ways so I'm I'm pretty basic I want a little bit of return and I I I want a little bit more and I'm willing to to go a little bit deeper but I don't want defi though perfect that's very interesting it's a good way to also segment your your audience or your users so first is if you're if you're just happy with a savings rate type of a return which is possible by just simply staking your e and that gets you about 3% today and there are several ways for you to stake your e right like you can

go to centralized exchange like coinbase or binance or okx or you could uh stake with liquid staking protocols like Lio or sta Labs rocket pool there are a bunch of uh them out there you can simply deposit your e there and uh they'll do the magic for you they'll abstract the complexity of selecting the validators depositing with the validators all of those things in the background for you and all you get is like 3% Rewards or Returns on your e on an annual basis so that's simply the first category of users who want to sort of earn State Savings rate kind of a yield on their e the second category is

where it gets really exciting and interesting of course there are ways if you are a d d yourself there are ways and means for you to sort of maximize yields but I do understand that a lot of D5 stuff is still very complex for a lot for majority of the users to deal with you have to go understand what a money market is you you got to go understand what a what an automated Market maker is or a Perpetual protocol is or you you have to go to a bridge and then Bridge your tokens to L2 all of this get gets extremely complex for for a new user yet who wouldn't like extra yield on on top of their eats right especially in these

kind of market conditions and all the more reason to participate uh if there are poent if there's potential to make 20% or 30% of course not Financial advice there are risks associated with it but there are protocols like kelp and kelp gain that abstract out the complexities of all of these all you need to do is take your e or if you have have already deposited with a liquid staking protocol like Lio take your St you can use a product called kelp G which already has about $100 million in assets that are deposited with it and kelp gain does it for you you get six different air drops and the staking

rewards as well which is a 3% savings rate plus you also get six different air drops on top of it I mean I'm just the speculation is the Ys could be as as high as like 30 35% depending on how these protocols that are going to air drop their new tokens to users are going to perform but gain does this does does the entire thing in the background for you takes your re Stakes it reakes it on I layer Bridges it to some of the newer l2s like linear scroll and some of the reaking protocols like carak uh and then because your assets are deposited on these different opportunities you're

eligible for air drops and that to boost it in some cases yeah what I love about gain and what you guys have built is the the concierge approach you call it the dgen conier which is a great tagline by the way uh but this idea that there is there is many people who would want to go take these steps themselves but that's not everybody most people are not going to go deep into defi most people are not going to as you said take the time to learn all these steps which bring extra complexity and extra risk uh and with you with kelp gain you guys

have simplified this so okay I want access to uh not just this basic staking reward of 3% I want to take a little bit I want to go a little bit deeper but I I'm not the type of person that wants to go do the def stuff myself well great I can come to gain and it's one click very simple all in one place All in One dashboard I can get this 3% and as you said then I can get access to additional rewards of igen Lair and other airdrops of these other protocols where we anticipate tokens are coming in the future and those rewards could equal as you it's difficult to project but they

could be anywhere from like 20 30 maybe even 35 40% uh so that's that's quite significant return that you can get in for such a simple thing let's I would love to walk our users through what are the actual steps to do this what does this look like would you mind screen sharing for us and showing us how a gain works and how a user could get access to these Rewards yep absolutely so this is the simple gain page let me start probably from the beginning all users have to do is like go to k.

XYZ just click restake Now button there's this uh new section called gain and click deposit this is what gets you here into game and yeah you can see a lot of details on this page about 95.6 million of assets have been staked and as I mentioned gain gives you access to six air drops and also this staking rewards rate of currently it's about 3.1% and these are the air drops that are uh that are available to Linea scroll carak kelp igen points and also our infrastructure partner all of them

are boosting these rewards and for all of our listeners and if you're listening on the podcast uh you might want to switch to Spotify or switch to YouTube so you can see this screen share so you can see what we're talking about but we'll do our best to explain it if you're not able to switch um so right now there's six air drops is there plans to have more airdrops in the future yes absolutely think of this as like an eternal airdrop and yield farming uh opportunity or a w that is going to deposit the etherium state or LST is deposited into this Vault this is going to deploy those across multiple new opportunities that are coming up and

Farms the best possible air drops okay so I come here I don't want just the basic 3% you know I I think a lot of people are just staking on a centralized exchange because it's so easy um I want to go beyond that I'm going to bring my eth here I'm going to deposit my eth into the airdrop gain Vault uh and I know there's plans for other vaults in the future as well but we'll stick to discussing this one right now uh and it's simple I just deposit my eth and and then maybe walk us through what what happens after I deposit my E Yeah so let me actually go ahead and deposited a little bit of eth from my account I'm going to do like one eth I just selected

e you can also deposit a bunch of lsds as well as RS e which is KS reaking token but let's just simplify it for now say I am a user I have e in my wallet and I'm going to select e as the deposit asset here you can see the balance e balance that I have have in my wallet I'm going to just select restake now so just confirm yeah it's going to ask you to go through your signing through your metamask take all those steps then it's going to take a minute to talk to the blockchain and finish the transaction there is the transaction that is successful MH and you can see my the balance in my wallet has reduced by one e mhm and I actually when when you

when you as a user deposit eth in the airdrop gain Vault you get a token called AG e that's like the airdrop gain e m and you can see I have about three AG e because I already had about about two AG that I deposited before and another one AG got added here so you get a you get a liquid token in return for this okay and now before before we we can talk about that liquid token and what you can do with that in a second because you can get even more rewards but before we do that um how does how do the rewards that you're going to get

currently work so uh now that I have deposited my eth into the airdrop gain Vault I'm going to get about 3% yield it fluctuates but it's around 3% yield for for because the gain vault is spit staking my eth for me it's doing the same thing that staking on Lido or staking on a centralized exchange would do we are also going to get these these airdrop rewards can you just walk us through how you actually get these two forms of rewards absolutely so when users you as a user deposit e with the airdrop gain W the eth is actually staked with a validator and then that e is also restak on igen layer so you

Double Di one is the staking rewards and you also get the igon layer uh points so you have the reaking yields as well and when after the reaking is done you get a receipt like the Walt manager gets a receipt token called rce and that RS is deposited in multiple D5 strategies MH and because RS is a very popular token that is accepted as one of the assets across these different D5 opportunities and l2s and because this RS is on those V5 opportunities you're getting these different air drops like for example 40% of the r is bridge to Linea using layer zero and Linea is giving air drops or

linear L xpl points the way they call it to the RS that is bridge to Linea similarly carak is a reaking protocol and they are giving like three times the Boost that they typically give to the RS that we are depositing from the wall so all of these kind of are adding up and you have like three layers of rewards first one is the 3% savings rate second one is the reaking rewards from igen layer and the third one is all of these d uh opportunities rewards like Linea scroll uh carak Etc and it's when we add them all up that we could get to that 20 to

40% total yield that you could possibly get and how do I how do I can I see these rewards that I'm getting how do I do I how how do I actually collect these rewards are they just paid out to my wallet automatically so the first is the St the staking Rewards or the savings rate that is paid out automatically because the AG which is the liquid token it increases in price as you collect the staking Rewards right the other rewards will be available to be claimed uh on kelp website uh we're going to have a section as soon as they start announcing their

tge we are going to have a clear section on the kelp website where you will have an opportunity to either claim directly there or we will show the exact uh website address where you can go and claim these rewards so you make it very very simple for for me to do all these things really which as we said at the beginning of the episode this you could do an advanced defi user could go do these things themsel already but as we know I mean the the basic stat is only 28% of eth is staked only 28% so there's a lot of

people that aren't even taking that step which is not which is the basic step let alone how many people are reaking and involving themselves in all of these other approaches in defi so now with gain you can get it all under one Hood it's incredible I want to talk about the risk so we're going to talk about that in a second because it's important that everybody understands the risk there is always risk associated with any form of investment uh but first one of the things that's really important is obviously to understand how do you exit we talk all the time on the show about how important it is to for your Investments to have an Exit Plan you always need to be clear on what is your target for this investment and when are you going to exit when are you going to

start to take profits these are things that every investor should be very clear on so in a similar way you need to understand if you were to deposit into kelp gains that you can exit that and how does how does exiting work it's very simple just the way I deposited there's something called a withdraw and you can withdraw in R which is Kelps liquid restating token and like let's say I am withdrawing 0.1 RSC all I need to do is just click withdraw okay as soon as the transaction is signed you have actually given back some of your RS Ag and you can claim the RS in about 48 Hours okay so you can exit fairly quickly 48 hours is pretty

quick to exit U staking reaking that's all happening behind the scenes CU how long would it typically take a user to exit out of this type of portfolio PL so it could get complex especially with the bridging and all of that especially if you're a newb who is farming on l2s it you have to go through multiple Hoops Bridge your e back to main net uh so and then gain kind of abstracts out all of that complexity we typically make the assets available or tokens available to exit within 24 hours the maximum is 4 48 to 72 hours okay so it's simple to exit uh and very easy which is which is great uh let's talk a

little bit about the risk one thing I need to mention is um kelp raised $9 million a few months ago uh from a incredible uh lineup of venture backers so congrats to the team I think that gives a lot of credibility to you guys and what you're building and shows that a lot of the the most well-respected funders in the space are excited about you and trust you um but for a user who is thinking about using airdrop gain what are the risks that they need to be aware of so I think U some of the risks with regards to any smart contract platform

is smart contract hacks those are because the entire crypto or blockchain technology is so new these risks kind of exist in the system but obviously there are ways to mitigate these risks that's why we go through multiple audits some of the most uh valued or trusted audit Partners like Sigma Prime code forina Etc have AIT audited kelp smart contracts and even the underlying protocols that uh K gain kind of utilizes like linear scroll carak these all of these have been audited several times including the bridging protocol like layer zero which is one of the most

popular ones so they have all been audited several times so uh that's one of the prerequisite before we deposit assets with any of these protocols we make sure that all of these Protocols are fairly well audited and uh safe and secure to deposit funds fantastic let's just talk about two final things before we wrap up here one is let's say I wanted to go even further here and so now I have my AG eth because I have deposited into the um into the gain air drop gain Vault what can I do with my AJ eth it's a very interesting question we just launched a launched a defi

integration on AG e with Pendle just about a couple of days ago and that pool is giving some juicy rewards I've just opened up pendle's UI and they have a farm for a that's giving about 36% and there's already about $14 million worth of AG deposited in this pool all you need to do is uh go in connect your wallet on the Pendle website and I'm going to deposit like maximum amount of My AG so now I am taking another step obviously this is getting a little bit more into defi but now I'm getting another currently

36% I think you said it was uh if I'm looking at this correctly on top of all these on top of my regular 3% on top of my igen lay points on top of the other airdrops that I am getting access to uh I'm also getting you 35.6% is the current apy on this if you take this additional step y absolutely incredible uh to think about all of this that can be done now obviously users need to understand that there is you know there's there's steps involved here there's risk inv here the main thing I think that every user needs to understand is you need to have a plan I think a lot of the mistake that often people make in defi is they go and they

put their money in all these different places and then it becomes very hard to track and it becomes very hard to keep um keep tabs on it all and make sure that you have you're clear on when you're taking this when you're exiting these positions and that you're watching all the API apy so I think the important thing is do your own research think about this yourself and think about what is the amount of not just the amount of risk that you want to take but the amount of time that you want to invest into your portfolio if you're sitting there and you're saying hey look I want minimal time I've got a full-time job and a family and I don't have any time then just keep this strategy simple go to kelp gain and just do that but if you want to take that extra step of

going to something like Pendle with your integration it makes it super simple and I'm sure there will be other dii protocols that will offer the ability to uh to to get more rewards from AG eth in the future as well yep that's true I am busy doing a lot of like building K so I typically just as You' seen right I just typically hold AG e on my wallet right okay final question so what's next kelp gain you guys just launched kelp gain two weeks ago this is a new product uh it's doing incredibly well so far obviously this very simple way to get access to all these rewards is fantastic it's solving a problem that I think a

lot of our listeners have which is they want to increase their yield but they don't want to go deep down the defi curve uh but what's planned this is just the beginning for gain what's planned for the future for gain as gain matures uh first one is adding more defy opportunities on top of a so that users could further utilize a across multiple protocols by themselves uh and the second one is expanding gain and adding more more vaults example uh a vault where we can poent we can accept stable coins like usdc or usdt that gets deployed across multiple Dy opportunities and gets access to all of these all of these aird drops and

rewards uh potentially launching something on BTC as well allowing people to stake BTC or to deposit BDC and yes get rewarded in BDC uh so that gain can automatically deploy the BDC that is deposited by the users across multiple def opportunities incredible I think uh for everybody listening I'm sure you are at least thinking about going and checking out kelp gain which is clearly uh going to allow you if you want to uh again investing and taking these steps is always a risk so make sure you do your own research and you think about this for yourself uh but certainly a

opportunity for everybody listening to increase their portfolio and to take advantage of the amazing rewards that are happening right now in the space Amit thank you so much for joining us today appreciate your time and everything that you and your team are building over at kelp thank you very much uh to you and milro for having me and to everybody who listened to the show amazing remember everybody uh we have on Wednesday we are announcing the winner of our raffle so make sure you listen to Wednesday's episode to know if you won the raffle for subscribing to our YouTube thank you so much that everyone participated and of course none of this is financial advice investing in crypto is risky and you should only invest what you can afford to lose see

you next time have a wicked awesome day [Music]