Lido Clarifies That Aave's Incorrect Liquidation Event Is Not Related to wstETH or the Protocol

KuCoinFlash

Release Time: 03/11/2026 10:17:35

Summary

Lido confirmed on March 11, 2026, that a faulty price boundary from Aave’s CAPO oracle triggered a wstETH liquidation in E-Mode, resulting in a 345 ETH loss. The issue arose from a discrepancy between oracle data and the market price, not from wstETH or the Lido protocol. No bad debt was created, and all users will be fully reimbursed. The ETH price remains stable, and monitored altcoins show no signs of impact. Lido’s Earn products, including stRATEGY and GGV, remain unaffected.

BlockBeats report, on March 11, according to official announcements, Lido stated that a configuration error in Aave’s CAPO oracle caused wstETH to be liquidated under E-Mode, resulting in approximately 345 ETH in losses. Fortunately, no bad debt was generated, and all affected users will receive full compensation. The error stemmed from a mismatch between the wstETH:USD price bounds reported by the CAPO oracle yesterday and the prices used by the Aave market, triggering the liquidation mechanism.

Lido officially emphasizes that this erroneous price boundary is unrelated to the underlying assets of wstETH and does not involve any issues with wstETH or the Lido protocol. The issue was limited to the market price feed from the CAPO oracle and has been promptly identified and corrected to prevent similar incidents in the future.

In addition, Lido’s Earn products, including stRATEGY and GGV, were not affected by this liquidation event, and user funds remain secure. Aave and Lido will continue to closely monitor market conditions to ensure the safety of user assets and promptly update risk mitigation measures.

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