# Ethereum Foundation Swaps aWETH For wstETH

> The 21,269 aWETH-to-wstETH swap reduces Lido EarnETH's WETH debt on Aave by ~20,000 WETH after the KelpDAO exploit drove utilization to peak levels.

**Published by:** [ETH Daily](https://ethdaily.io/)
**Published on:** 2026-04-24
**Categories:** ethereum foundation, aave, lido, defi, liquid staking, wsteth
**URL:** https://ethdaily.io/ethereum-foundation-swaps-aweth-for-wsteth

## Content

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.Sponsored byEarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at stake.lido.fi/earnDisclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.

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