ChainCatcher report: Lido posted that Aave’s CAPO oracle reported an incorrect price yesterday, resulting in an incorrect price boundary for wstETH:USD within the AAVE market and triggering liquidations. No bad debt occurred, and all affected users will be fully compensated. These incorrect price boundaries were unrelated to wstETH as an underlying asset and involved no issues with the Lido protocol. Lido Earn products, including stRATEGY and GGV, were not impacted by these liquidations, and user funds remain secure.
Lido Responds to Aave Liquidation Incident: Oracle Price Error, No Issues with Lido Protocol
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Summary
Lido confirmed that the Aave liquidation incident resulted from a CAPO oracle price error, which caused distorted wstETH:USD price boundaries in the Aave market. The issue was unrelated to Lido’s protocol or wstETH as the underlying asset. No bad debt occurred, and all affected users will be compensated. Lido Earn products, including stRATEGY and GGV, remain unaffected. User funds are secure. The incident underscores the importance of implementing protocol updates in response to cryptocurrency price news.
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