KelpDAO Restores Full Backing for rsETH Above 100% Collateralization

Key Facts

1KelpDAO announced that rsETH is fully backed again after completing the final stage of the OFT adapter recovery refill.

In a move aimed at bolstering confidence within the Liquid Restaking Token (LRT) sector, KelpDAO has announced that rsETH is once again fully backed. According to reports, the token is now collateralized at a ratio exceeding 100% following the successful completion of the final OFT adapter recovery refill. This restoration was necessary to address a previous shortfall in backing and ensure protocol solvency.

This recovery comes amid intensifying competition in the DeFi space, where KelpDAO competes for TVL against major protocols like Ether.fi and Renzo. Per market data, maintaining a backing ratio above 100% is critical to preventing de-pegging risks that have historically affected similar liquid restaking assets, thereby strengthening rsETH's position within the Ethereum ecosystem.

Traders should monitor the liquidity depth of rsETH trading pairs to ensure continued price stability. Looking ahead, the market will watch Fed Governor Waller's speech on May 19, 2026, for broader sentiment cues, alongside Eurozone inflation data on May 20, 2026, which could impact global liquidity flows into decentralized finance platforms.