Summary

1. Set the expiration date for all Credit Managers in the Chaos Labs wstETH pool to 1766235600

   • UTC/GMT: Saturday, December 20, 2025 — 13:00:00

2. User-protection measure: Liquidation premium and fee will be set to its lowest value of 0.01% in affected Chaos Labs market. If a position is liquidated by the DAO Emergency Liquidator on paused Credit Managers of kpk-curated wstETH CMs which contain rstETH, then 100% of the liquidation profit (if any) will be returned to the Credit Account owner.

Motivation

Mellow & P2P are planning an upgrade for the rstETH contract. They are changing the implementation of the existing token instead of creating a new one. That has two consequences:

• Compatibility breakage: Existing contracts Gearbox relies on (e.g., oracles, adapters) which become incompatible with Mellow’s new version.
• Risk-profile discontinuity: rstETH keeps the same token address, but becomes a materially different entity from a technical and economic-risk perspective, while appearing unchanged at the address level.

We would prefer not to take this action and have asked Mellow to rework the migration process to be safer for existing token holders, but they are proceeding with the in-place upgrade approach. Therefore, Gearbox must take a conservative action to protect the protocol and its users.

Specification

Setting expiration date and liquidation parameters for

• wstETH Correlated Tier 1
• wstETH Correlated Tier 2 Credit Managers

in Chaos Labs wstETH v3 market

Expiration date - 1766235600 Expired liquidation fee - 0.01% Expired liquidation premium - 0.01%

kpk wstETH market

If 0x7BD9c8161836b1F402233E80F55E3CaE0Fde4d87 or 0x16040e932b5Ac7A3aB23b88a2f230B4185727b0d liquidate rstETH accounts during pause, liquidator profits will be returned to account owners.

Execution

Given the strict timeline and the low likelihood of any delay, we propose to queue and execute the required transactions in the timelock as soon as the “For” quorum is reached, without waiting for the full proposal voting period to conclude.

Txs log

Txs log can be found [here](https://gearboxprotocol.notion.site/GIP-273-2c8145c1622480a18244ece476f3f6d2?source=copy_link Md5 checksum is 1c2f625fcfb267c8e72ad12a4a1f6dcd