Update on KPK's Gearbox markets following the rsETH incident. KPK's Gearbox markets continue to operate safely. There is no direct rsETH exposure. LTVs on collateral with indirect Aave exposure has been adjusted conservatively, so lenders stay protected even in a contagion scenario. On Saturday, KPK took the following precautionary steps: • rsETH quotas set to zero, blocking any new exposure • Borrowing paused on tETH, PT-DETH, DETH and the Beefy-wrapped Balancer v3 pools that rely on Aave for liquidity (osETH/WETH, rETH/WETH, tETH/wstETH) Over the weekend, a large withdrawal from the Gearbox WETH pool pushed utilisation to 100%, driving borrow rates sharply higher. Some Beefy-wrapped borrowers are temporarily unable to close their positions, as closing requires unwrapping aEthWETH to plain WETH, which Aave is not currently servicing. This has kept rates elevated. In response, KPK has queued a change in the timelock that flattens the WETH pool's interest rate model. Once live (~14:00 UTC, 21 April), the maximum borrow rate drops to approximately 5% APY, bringing all affected strategies back to positive carry. All collateral without Aave exposure can still be unwound normally. The wstETH pool is unaffected, with utilisation there still normal. We are monitoring closely and will post further updates. If you have questions about your position, reach out directly.