KelpDAO just dropped an exciting update on X that's got the DeFi community buzzing. Their wrapped rsETH (wrsETH) has climbed to the number one spot as the ETH asset on Aave V3's Linea market, boasting over $360 million in supplied value. If you're new to this, rsETH is KelpDAO's liquid restaking token, which lets you restake your ETH while keeping it liquid for other uses in DeFi. The "w" stands for wrapped, making it compatible with certain chains like Linea.

The tweet highlights that this is the fourth time they've hit the max supply cap, and each increase gets filled up super quickly—often in just days. A supply cap in lending protocols like Aave is basically a limit set to manage risk, preventing too much of one asset from being supplied at once. But with wrsETH's popularity, these caps are being raised repeatedly to accommodate the demand.

They shared a fun animated video showing a cute explorer character scaling a mountain, symbolizing the climbing supply caps from 6,400 ETH all the way up to 140,000 ETH and beyond. It's a creative way to illustrate how fast things are moving. Right now, a new cap has just opened, and KelpDAO is urging folks to deposit before it's full again.

For those interested, you can check out the reserve overview directly on Aave's app.

This surge in wrsETH on Linea shows the growing interest in liquid restaking solutions. Linea, built as a zkEVM layer-2 on Ethereum, offers fast and cheap transactions, making it ideal for DeFi activities. Aave V3 is the latest version of the popular lending protocol, allowing users to supply assets to earn interest or borrow against them.

Why This Matters for DeFi Enthusiasts

If you're into blockchain and crypto, this is a prime example of how restaking is evolving. Restaking lets you earn extra rewards by securing other networks with your staked ETH, and liquid versions like rsETH mean you don't have to lock up your capital completely. KelpDAO, part of the Kernel DAO and backed by big names like YZi Labs, Laser Digital, and SCB, is making waves with their tokenized vaults and Gain features.

The rapid cap increases suggest strong community trust and utility. It's not just hype; with $360M+ supplied, wrsETH is proving its worth in real-world DeFi usage.

Community Reactions

The thread has garnered likes, reposts, and some replies. Aave themselves responded with a ghost emoji, perhaps nodding to the "spooky" fast growth. Other users are expressing excitement, with one saying it's moving "crazy fast" and another HODLing the momentum.

Keep an eye on KelpDAO for more updates—this space is heating up!