Wave 6: Hyperdrive Deploys on Linea with rsETH as a New Yield Source
The Hyperdrive Protocol has deployed on Linea and a new yield source has been added: rsETH from Kelp.
YieldFest is still going strong and we’ve got more major milestones to celebrate this week! Now, we’re proud to announce that the Hyperdrive Protocol (developed by DELV; this instance operated and managed by the Element DAO) has deployed on Linea, and a new yield source has been added: rsETH from Kelp.
“This deployment is another step in the right direction for accelerating access to Hyperdrive and the rapidly expanding range of yield opportunities for DeFi users, traders, and LPs,” said Charles St. Louis, CEO of DELV. “We’re looking forward to seeing where it will lead as we introduce more ways for people to pursue their preferred financial strategies. And we also want to thank the HyperVue Foundation (formerly Element Foundation) who facilitated the connection with Linea as part of their role in supporting the Element DAO Hyperdrive ecosystem.”
What is Linea?
Linea is a Layer 2 scaling solution developed by Consensys. It uses zero-knowledge (zk) rollups to enhance scalability, reduce transaction costs, and improve transaction speeds with the aim of empowering DeFi users to trade, lend, borrow, and stake assets in a cost-efficient way. Its zk-rollup technology bundles multiple transactions into a single transaction that’s processed off-chain, which significantly increases the number of transactions processed per second and helps reduce the gas fees associated with Ethereum.
Linea is also fully compatible with the Ethereum Virtual Machine (EVM), meaning that most dApps, smart contract projects, or protocols built on Ethereum can be easily integrated into the Linea ecosystem.
What is rsETH?
Kelp’s rsETH is a tokenized version of staked ETH from Kelp Finance, a decentralized staking and liquidity protocol. When users stake ETH through Kelp, they receive Kelp rsETH in return and can transfer or trade the asset without having to wait for Ethereum's unstaking process.
It’s also an ERC-20 token that’s compatible with a wide range of DeFi protocols, and can be used for lending, borrowing, trading, and providing liquidity, all while maintaining exposure to ETH staking opportunities.
How to Get Started with rsETH on a Hyperdrive pool
If you want to provide liquidity, here’s how it works:
- Acquire rsETH by staking ETH via Kelp, or purchase it directly through an exchange like Uniswap or Balancer V2.
- Access the Hyperdrive app.
- Deposit rsETH on Hyperdrive by navigating to the LP tab.
- Earn yield with rsETH staked on Hyperdrive. You’ll gain returns from staking and trading fees.
And if you’re a trader, here’s what you can do:
- Acquire rsETH by staking ETH via Kelp, or purchase it directly through an exchange like Uniswap or Balancer V2.
- Access the Hyperdrive app.
- Deposit rsETH on Hyperdrive.
- Open a long position at a fixed rate or a short position at a variable rate.
The waves keep rolling in, and we’ve got plenty of additional YieldFest integrations and deployments to share in the coming weeks. Stay tuned to hear about the latest updates about new yield and trading opportunities.
Missed our earlier posts? Check out Part 1, Part 2, Part 3, Part 4, and Part 5 to learn about our other integrations. Plus, take a look at our YieldFest kickoff announcement for more details (including our role as a non-exclusive service provider to the Element DAO).
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Note: This blog post is general in nature and for informational purposes only. It is not legal, tax, investment, financial or other advice, nor is it a comprehensive or complete statement of the matters discussed. It is not a recommendation of an investment strategy and should not be used as the basis of any investment decision.
All transactions and investments involve risk, and past performance does not guarantee future results. Certain complex strategies carry additional risk and are not appropriate for all users. As with any DeFi or crypto position, you may incur losses. You alone are responsible for evaluating the benefits and risks associated with any decision to use Hyperdrive and the risks or concerns with any underlying yield source.
Hyperdrive is not currently available in certain jurisdictions, such as the USA and the UK.