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2w ago

Aave Liquidations Top $27 Million After CAPO Oracle Mismatch Undervalues wstETH

Chaos Labs says stale CAPO settings briefly pushed the token’s allowed exchange rate below market.

Defi lending platform aave sees a rare $27 million liquidations after a price glitch
Aave users lose $26M after wstETH oracle misconfiguration triggers liquidations

Overview

  • About $27 million in Aave positions were liquidated over roughly 24 hours after wstETH was priced about 2.85% below market, according to Chaos Labs.
  • Chaos Labs attributed the mispricing to desynced CAPO snapshot parameters, where a 3% per‑three‑day cap conflicted with a seven‑day update.
  • Roughly 10,938 wstETH across 34 accounts were liquidated, yet the protocol incurred no bad debt as liquidators stepped in.
  • Third‑party liquidators captured around 499 ETH in bonuses and profits during the event.
  • Aave cut borrow caps and fixed the oracle configuration; about 141 ETH has been refunded via BuilderNet plus roughly 13 ETH in fees earmarked for users, with any shortfall to be covered by the DAO treasury, while Lido said the issue was oracle‑related rather than a problem with wstETH.