DeFi lending platform Aave sees $27 million liquidations after wstETH price glitch

DeFi lending platform Aave sees $27 million liquidations after wstETH price glitch

The blockchain data flagged shows a spike in liquidations over the past 24 hours. Some observers believe the event may have been linked to a price update in an risk-oracle system that Aave uses to determine the value of collateral.

What Happened in the Aave Oracle Incident? $26M Liquidations Explained

A configuration error in a price oracle used by Aave triggered roughly $26–27 million in liquidations on Tuesday, after the system temporarily undervalued a key ethereum staking asset used as collateral. DeFi Lending Giant Aave Moves to Reimburse Users After Oracle Mispricing The issue involved Aave’s Correlated Asset Price Oracle (CAPO), which is designed to […]

$26 Million Vanished in a 15-Minute Aave Glitch - Here Is How It Happened More Stories ETHNews

An oracle misconfiguration on Aave v3 caused automated smart contracts to incorrectly flag thousands of wstETH positions as undercollateralized, triggering a mass liquidation cascade that wiped $26.4 million in user funds before the protocol could be paused. The market’s reaction focused less on the bug and more on what happened next. What Went Wrong The Aave oracle, the price feed that determines collateral values for the protocol’s lending pos…

Aave price holds bearish setup amid $27M liquidation error

Aave price is trading near $111 as traders react to a $27 million liquidation error that briefly shook confidence in the lending protocol. Aave (AAVE) slipped on Wednesday as traders reacted to a recent liquidation incident on the protocol. At…

Oracle error adds to turmoil at DeFi giant Aave

Almost $27 million worth of liquidations were triggered on DeFi lending giant Aave yesterday, thanks to a faulty price cap oracle update. The Correlated Asset Price Oracle (CAPO), run by risk manager Chaos Labs, sets caps for the price ratio between correlated assets, in order to protect against price manipulation attacks on the protocol.  In a post to the Aave governance forum, Chaos Labs explained that, due to a timestamp mismatch, the price r…