The tech powering Gain by Kelp

As the DeFi ecosystem expands, so does the need for sophisticated tools that can streamline operations and optimize returns. Enter Gain by Kelp — an advanced solution designed to simplify and enhance your DeFi experience.In this blog, we delve into the technical workings of Airdrop Gain, exploring how the vault operates, the smart contracts that power it and the strategies used to enhance reward generation. 

What is Airdrop Gain?

This vault offers a diversified strategy to maximize earnings from L2 and restaking airdrops while accessing DeFi opportunities on the Ethereum mainnet.

• How Airdrop Gain works:
  • Users deposit ETH or ETH-based derivatives into the Airdrop Gain vault.
  • The deposited assets are bridged to partner L2 networks, including Scroll, Linea, and Karak, to capitalize on boosted airdrop opportunities.
  • The vault’s smart contract automatically adjusts the allocation of assets to optimize airdrop earnings.
  • Users can deploy their liquid tokens (agETH) on platforms like Pendle for additional DeFi yields.

Technical details

Here is the behind-the-scenes of the vault mechanics:

1) When a user deposits assets through the dApp, they are passed to an adaptor contract. The vault only accepts rsETH, the adaptor converts any non-rsETH assets (like ETH and LSTs) into rsETH before depositing them.

In the same transaction, agETH is minted and transferred to the user's address. Very soon, agETH can be utilized in DeFi opportunities on mainnet as well as partner L2 core markets. For instance, PT and YT strategies on Pendle can be expected shortly. We’ll share updates as soon as more functionalities go live.

2) Airdrop Gain currently supports ETH and ETH derivatives, such as Kelp’s LRT rsETH, Stader Labs’ LST ETHx and Lido Finance’s LST stETH.

3) Once the rsETH is in the vault, it is transferred to a smart contract called  ‘subaccount.’ The Strategy Manager then allocates these assets across various strategies according to the predefined allocation, which can be viewed on the dApp, to earn rewards and points.

4) When users place withdrawal requests, the rsETH (or asset) is recalled by the Strategy Manager from different strategies as per the requirement. Once the assets are available in the subaccount, a transaction is initiated to move the assets from the sub account to the vault. From here, the user claims their rsETH.

5) Gain vaults automatically rebalance and adjust their positions to optimize airdrop and reward farming opportunities, ensuring your assets are always deployed efficiently.

Smart contracts

1. ERC-4626 vault 
2. LRT Adaptor contract 
3. Subaccount contracts:
   1. Subaccount 1
      

Audits

The smart contracts have undergone multiple audits by reputed auditors, the latest one being done by Sigma Prime. Detailed audit reports are available here

Looking ahead

As Kelp Gain continues to evolve, we will integrate more L2 networks and DeFi protocols. Our goal is to create a seamless, one-stop platform where users can maximize their earning potential with minimal effort.

Whether you’re a seasoned DeFi veteran or just getting started, Kelp Gain offers a powerful and user-friendly way to. Join us on this journey and experience the future of effortless yield earning.