According to The Block, Aave experienced a temporary oracle failure on its Ethereum Core and Prime instances on March 10, resulting in the improper liquidation of approximately $26 million in wstETH positions. A post-event analysis report released by Aave’s primary risk management service provider, Chaos Labs, attributed the issue to a misconfiguration of the Connected Asset Price Oracle (CAPO). Due to an inconsistency between the snapshot ratio and the snapshot timestamp, the oracle reported an exchange rate cap of approximately 1.1939, significantly below the actual market rate of about 1.228, triggering erroneous liquidations of E-Mode positions. The event affected approximately 34 accounts, with a total of 10,938 wstETH liquidated. Chaos Labs stated that a compensation plan is underway, using 141.5 ETH recovered from the event and up to 345 ETH from the DAO treasury to reimburse affected users. The report emphasized that this incident was not due to any design flaw in the CAPO or off-chain risk oracle, but rather a parameter misalignment caused by on-chain configuration inconsistency.
Aave Oracle Glitch Triggers $26M wstETH Liquidations
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Summary
On March 10, a glitch in Aave’s oracle triggered $26M in wstETH liquidations due to a misconfigured on-chain analysis parameter. Chaos Labs reported that the asset price oracle (CAPO) incorrectly capped the exchange rate at 1.1939, below the actual rate of 1.228. Approximately 34 accounts were affected, with 10,938 wstETH liquidated in E-Mode. A compensation plan is underway, utilizing 141.5 ETH recovered and up to 345 ETH from the DAO treasury. The issue resulted from on-chain analysis misalignment, not a design flaw. Altcoins to watch may experience volatility as market confidence shifts.
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