Keychain helps you to manage ssh and GPG keys in a convenient and secure manner. It acts as a frontend to ssh-agent and ssh-add, but allows you to easily have one long running ssh-agent process per system, rather than the norm of one ssh-agent per login session.
This dramatically reduces the number of times you need to enter your passphrase. With keychain, you only need to enter a passphrase once every time your local machine is rebooted. Keychain also makes it easy for remote cron jobs to securely "hook in" to a long running ssh-agent process, allowing your scripts to take advantage of key-based logins.