Mellow

Imagine building your own institutional-grade yield engine – custody intact, risk isolated, execution spanning both DeFi and CEXes. Where adding protocols don’t require endless code, new adapters, or patching dashboards. That’s Core Vaults by Mellow. And they’re live today.

EarnETH MetaVault update. Since the Kelp rsETH bridge exploit on April 18, Mellow has been systematically unwinding leveraged positions across the vault. Multiple loops have been fully or substantially deleveraged, including a bilateral swap with the Ethereum Foundation. On a combined basis, all non-rsETH positions are now net positive. Health factors have improved significantly, bringing all positions into a comfortable range with no immediate liquidation risk. sETH/WETH – position unchanged. Awaiting final resolution through the DeFi United recovery plan, which outlines the path to restoring rsETH backing and clearing exploiter positions. The remaining work is completing the final deleveraging steps and the rsETH resolution.

@FloatingGorilla @LidoFinance That's right, only EarnETH is paused at the moment. EarnUSD withdrawals will be processed soon.

@mellowprotocol @LidoFinance many people reporting they have been waiting 5+ days for EarnUSD withdrawals, are you still processing these? I thought only EarnETH was paused at the moment?

0/ Today, the Ethereum Foundation completed a bilateral swap of ~21,269 aWETH to wstETH, coordinated with @LidoFinance and @mellowprotocol as part of their ongoing deleveraging work.

This brings the vault's Aave WETH debt from ~82k to ~62k – improving the health factor and reducing ongoing borrowing costs. Transactions: etherscan.io/tx/0x51af80c45… etherscan.io/tx/0x633481add… etherscan.io/tx/0x52957d946… etherscan.io/tx/0x4f0804b3b…

Mellow and @LidoFinance completed a bilateral swap of ~17,254 wstETH to ~21,269 aWETH with the @ethereumfndn, as part of ongoing EarnETH vault deleveraging. aWETH retires WETH debt on Aave directly – no market selling, no slippage, no impact on wstETH/ETH rates.

@Skunk296 Should be processed by now🫡

Once agents show up, the human clicking buttons is the bottleneck🤖

EarnETH MetaVault Update. Mellow team has been working to deleverage affected EarnETH vault positions since the rsETH market freeze on April 18. Active positions have been partially unwound through limit orders, and high-rate debt has been refinanced into lower-cost venues to reduce rate exposure, maintain collateral efficiency, and avoid loss realization. Positions tied to frozen markets remain unchanged until the resolution path is clear. Deposits and withdrawals remain paused to ensure fair and equal treatment of all depositors. They will reopen once there is clarity on the rsETH resolution. Mellow team continues to coordinate with Lido, Aave, and other relevant parties. Further updates will follow as the situation develops.

Lido has published a detailed update on EarnETH exposure, full details and next steps in Lido's thread:

Withdrawals are paused to ensure fair treatment of all depositors. Lido's first-loss protection mechanism applies on EarnETH depositors. Final impact depends on actions by Kelp, LayerZero, and Aave governance. Mellow is coordinating directly with all relevant parties.

On April 18, KelpDAO's rsETH bridge was exploited for ~$292M. rsETH markets on Aave and other lending venues were frozen shortly after. The Lido's EarnETH MetaVault on Mellow has exposure to rsETH through a leveraged Aave position – approximately $21.6M, ~9% of the vault.

1/ On April 18, an attacker drained 116,500 rsETH (~$292M) from Kelp's cross-chain bridge. rsETH markets on Aave and other lending venues were frozen shortly thereafter.

@CryptoTilde Another update is coming today. We are coordinating directly with all relevant parties and will share more details soon.

@mellowprotocol Very responsive of you leaving us for more than 24 hours without updates. Not exactly the team I'd make handle my money in the future

EarnETH has exposure to rsETH looping on AAVE. We’re actively monitoring situation and in contact with AAVE and KelpDAO teams.

@Fozoro101 We are actively monitoring the situation and will provide a detailed update as the picture becomes clearer.

@mellowprotocol Any risks with EarnUSD?

[DVV Migration Notice] Following the latest Snapshot vote, the DAO has approved redirecting DVT incentives from the Decentralized Validator Vault (DVV) to Lido Earn strategies. If you’re a DVV holder: • Migrate to EarnETH to maximise your rewards • Or withdraw your position

Yield products are maturing. Mellow's Ecosystem Lead @etn1337 shares what to expect in 2026 on a webinar by @RootstockLabs

Weekly APY reached 7% across March. Thirty days, not a single week missed target, just math. NAV over 100K ETH and new strategies being onboarded as we speak. More protocols, more capacity, more ways to put your ETH to work. The vault keeps scaling: app.mellow.finance/vaults/earn-eth

Late March – two fresh allocations. Levered syrupUSDT on Aave Plasma, scaled rsETH on Aave Core. Limited capacity on both, but when you're already monitoring every pool daily, you tend to show up first. That's the game when you're deploying real size, not paper napkin numbers.

Ever looked at a vault APY and thought "ok but what are they actually doing in there?" New protocols, new allocations, a pipeline that keeps growing. NAV exceeded 100K ETH. Here's what was actually happening inside @LidoFinance's EarnETH MetaVault on Mellow in March.