Gearbox to Update RstETH Borrowing Infrastructure on December 21

Gearbox Protocol reported that Mellow Protocol and P2P Validator will upgrade the infrastructure supporting the rstETH vault after December 21. As part of this process, the current Mellow integration with Gearbox will be gradually phased out.

Borrowers with leveraged rstETH positions are advised to close their positions ahead of the transition. To facilitate a smooth exit, Gearbox has enabled direct withdrawals from Mellow, allowing users to unwind positions with near-zero cost and without DEX fees or slippage.

For positions that remain open after the migration, rstETH will be automatically converted back to wstETH, and outstanding debt will be repaid. The protocol stated that liquidation parameters have been adjusted to minimize user impact, including a reduction of the liquidation premium to 0.01%.