• Aave DAO offers 25k ETH to DeFi United.

• EF swaps aWETH for wstETH.

• Polymarket plans a chain migration.

• Bitmine buys 10k ETH from EF.

EarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at stake.lido.fi/earn

Aave service provider TokenLogic proposed allocating 25,000 ETH from the Aave DAO treasury to DeFi United, the coalition aiming to fully restore backing for KelpDAO's rsETH. Aave calculates a residual funding gap of approximately 75,081 ETH after the Arbitrum Security Council's 30,766 ETH freeze and expected liquidation recoveries from the attacker's positions on Aave and Compound. Aave's contribution, combined with Mantle's 30,000 ETH credit facility and pledges from Lido, EtherFi, Ethena, Ink, BGD Labs, and others, is expected to completely fill the rsETH shortfall. The proposal will advance to a Snapshot vote by AAVE token holders. Read more →

The Ethereum Foundation exchanged 21,269 aWETH from its Aave lending position for 17,254 wstETH in a transaction with Mellow and Lido Finance. Mellow, a curator for Lido's EarnETH vault, used the aWETH to pay down the vault's WETH debt on Aave after the KelpDAO exploit drove Aave's WETH market to peak utilization. The swap reduced EarnETH's outstanding WETH debt from approximately 82,000 to 62,000 WETH, improving the vault's health factor. Read more →

Polymarket's VP of Engineering DeFi posted an engineering roadmap to scale the platform's infrastructure to meet growth. The roadmap includes plans for a chain migration aimed at offering more block space, lower gas costs, and faster block times. It was not specified whether Polymarket will launch its own chain or migrate to an existing L1 or L2. Other near-term priorities include rebuilding CLOB, reducing onchain data latency, and shipping a unified TypeScript SDK and WebSocket API. Read more →

• Ethereal news weekly #20

• EF sells 10k ETH to Bitmine

• Storm faces potential retrial

• DeFi United public contributions

• DeFi United dashboard

• Ernesto contributes 100 ETH

• BGD Labs contributes 250 ETH

• Chainlink data on AWS

• Lighter supports ETH collateral

• Sky Laniakea institutional infra

• mETH enables redemptions

• Fluent L1 goes live

Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.

The Ethereum Foundation exchanged 21,269 aWETH from its Aave lending position for 17,254 wstETH in a transaction with Mellow and Lido Finance. Mellow is a vault curator for Lido's EarnETH vault, which generates yield through looping strategies, where it borrows WETH against wstETH collateral to multiply staking exposure.

The KelpDAO exploit drove Aave's WETH market to peak utilization, causing borrowing rates to spike sharply and hurting previously profitable vault positions. Mellow obtained aWETH to pay back the vault's WETH debt on Aave without needing to sell wstETH on the open market. The swap brought EarnETH's outstanding WETH debt on Aave from approximately 82,000 to 62,000 WETH, improving the vault's health factor. Disclosure: Lido is a current sponsor of ETH Daily.

EarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at stake.lido.fi/earn

Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.

Aave service provider TokenLogic published a governance proposal to allocate a 25,000 ETH contribution from the Aave DAO treasury toward DeFi United, a coordinated recovery effort aimed at fully restoring the backing of KelpDAO's rsETH. Aave calculates a residual funding gap of approximately 75,081 ETH, after accounting for 30,766 ETH frozen by the Arbitrum Security Council and expected liquidation recoveries from the attacker's positions on Aave and Compound.

DeFi United is led by Aave service providers and includes contributions from Lido, EtherFi, Ethena, Ink, BGD Labs, Stani Kulechov, Emilio, Ernesto, and the Golem Foundation, with additional pledges expected. Mantle has separately committed a 30,000 ETH credit facility to the coalition. With Aave's 25,000 ETH contribution added, approximately 5,511 ETH of the residual gap remains, which the coalition expects will be covered.

Any additional public donations received after the proposal is approved will not reduce Aave's treasury commitment, instead it will be directed toward repaying Mantle's credit facility. Once gathered in full, the coalition will place the full 120,015 ETH into the LayerZero lockbox to execute the recovery. The proposal will advance to a Snapshot vote by AAVE token holders.

EarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at stake.lido.fi/earn

Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.