Aave-Linked Capo Oracle Glitch Triggered $27 Million in Liquidations
An Aave oracle glitch led to $27M in wstETH liquidations, prompting the protocol to compensate affected users.Summary
A configuration error in Aave's Capo risk-oracle system caused approximately $27.1 million in wrapped staked Ether (wstETH) positions to be liquidated due to a misaligned exchange rate. The issue stemmed from a mismatch between a snapshot ratio and timestamp, resulting in a calculated exchange rate below the actual market rate. While the protocol incurred no bad debt, liquidators received bonuses and value tied to the pricing deviation. Aave is recapturing liquidation bonus revenue and fees to compensate impacted users, utilizing BuilderNet refunds and DAO treasury funds to cover any shortfall. This incident highlights broader concerns about collateral pricing and oracle risk controls within DeFi lending markets, following similar attacks on other protocols. The event also occurs amidst ongoing tensions within the Aave ecosystem regarding governance standards and the Aave Chan Initiative's departure.
(Source：Cointelegraph)