Aave users lose $26M after wstETH oracle misconfiguration triggers liquidations
Aave users lost $26 million in liquidations due to a wstETH oracle misconfiguration that temporarily mispriced the asset.Summary
A configuration error in Aave’s CAPO oracle system caused approximately $26 million in liquidations after the system briefly priced wstETH about 2.85% lower than its actual market rate. The issue stemmed from a mismatch between the snapshot ratio and timestamp parameters; the offchain system aimed for a seven-day update, but an onchain constraint limited the ratio increase to 3% every three days, causing the calculated price to drop below market value. This resulted in 10,938 wstETH being liquidated across 34 accounts, with liquidators earning about 499 ETH in bonuses. Aave has since corrected the oracle configuration and reduced borrow caps. While liquidators profited, the protocol avoided bad debt, and 141 ETH in BuilderNet refunds plus 13 ETH in liquidation fees are being used to compensate affected users, with the DAO treasury covering any remaining deficit.
(Source：Crypto Briefing)