According to Lido (@LidoFinance), on March 11, an incorrect configuration of Aave’s CAPO oracle led to the erroneous liquidation of wstETH E-Mode positions, resulting in a loss of approximately 345 ETH. No bad debts have been incurred, and all affected users will be fully reimbursed. Lido emphasized that this incident is unrelated to the underlying assets of wstETH or the Lido protocol itself, and user funds in Lido Earn products remain secure.
Lido Responds to Aave Liquidation Incident: Oracle Price Error, Not Related to Lido Protocol
TechFlowShare
Summary
On March 11, 2026, Lido clarified that the Aave liquidation incident resulted from a CAPO oracle price error, not a flaw in the Lido protocol. The error triggered the incorrect liquidation of wstETH E-Mode positions, resulting in the loss of approximately 345 ETH. No bad debt was generated, and all affected users will be reimbursed. Lido emphasized that user funds in Lido Earn remain secure. With ETH prices under close watch, altcoins may also experience ripple effects from such oracle-related risks.
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