[PIP-025] - Add rsETH as collateral to mint ULTRA



This is a proposal for a new market, rsETH, to be added for users to borrow using rsETH on the Prisma LRT market.


Protocol Description

Kelp DAO’s rsETH is one of the largest liquid restaked tokens on the EigenLayer ecosystem which accepts Native ETH, stETH, ETHx, and sfrxETH as collateral. rsETH provides liquidity for the restaked positions, accumulates the rewards, and simplifies rewards management for AVSs

  • Kelp has more than 177,000 ETH assets restaked by over 18,000 users.
  • DeFi integrations across Pendle, Curve, Balancer, Maverick

By providing liquidity for the restaked positions, rsETH allows a seamless experience to engage with DeFi protocols and maximize rewards.

Increasing the DeFi utility of rsETH with PrismaLRT

With rsETH added as collateral on Prisma LRT, the users will have the option to borrow against rsETH which will open up a whole new avenue for the rsETH holders. Users could use ULTRA to engage with DeFi further and allow users to earn more rewards.

The increased usability in DeFi with PrismaLRT would benefit the overall utility of the rsETH token which will help the Kelp protocol grow further


Adding rsETH on PrismaLRT will benefit Kelp and Prisma.

  1. Kelp users will have the option to use rsETH to borrow ULTRA, which will help users earn more rewards

  2. With a total supply of over 180k rsETH, the Prisma protocol would also see an increase in TVL and revenue.


The proposal is to add a rsETH market in the PrimaLRT offering such that users can deposit rsETH and mint ULTRA tokens in return.

As rsETH is an ERC-20 token, adding support for rsETH should be fairly straightforward. The rsETH contract can be confirmed through Etherscan, CoinGecko, and CoinMarketCap.


As rsETH accepts ETH and LSTs of ETH, the exchange rate can be represented in the form of ETH. The price feed for rsETH has been built by Redstone and can be accessed here.

Suggested Parameters

Mint Cap: 10m ULTRA
MCR: 130%
Mint Fee: 0.75%
Borrow Interest Rate: 4%


  • Prisma will be one of the first CDP use cases for rsETH
  • High rsETH TVL compared
  • Increased TVL and utilization for ULTRA
  • Increased profit for the Prisma protocol
  • No blacklist-able collateral is backing rsETH
  • Increased utility for rsETH
  • Multiple audits


  • Smart contract risk from being exposed to DeFi strategies


If you agree with this proposal, a [YES] vote would lead to the following:

  • A Snapshot to add rsETH as collateral to mint ULTRA with the above parameters

If you disagree with this proposal, a [NO] vote would result in the continuation of Prisma operations as is.


Snapshot is live: Snapshot