TechFlow News: On March 11, according to The Block, Aave experienced a temporary oracle failure on its Ethereum Core and Prime instances on March 10, resulting in the improper liquidation of approximately $26 million worth of wstETH positions.
Chaos Labs, Aave’s primary risk management service provider, released a post-mortem analysis report stating that the issue stemmed from a misconfiguration of the Collateral Asset Price Oracle (CAPO). Due to an inconsistency between the snapshot ratio and the snapshot timestamp, the oracle reported an exchange rate cap of approximately 1.1939—significantly lower than the actual market exchange rate of roughly 1.228—causing erroneous liquidations of E-Mode positions.
The incident affected approximately 34 accounts, with roughly 10,938 wstETH tokens liquidated. Chaos Labs stated that a compensation plan is underway, utilizing 141.5 ETH recovered from the incident plus up to 345 ETH from the DAO treasury to compensate affected users. The report emphasized that this incident was not caused by any design flaw in the CAPO or off-chain risk oracles, but rather by a parameter misalignment resulting from on-chain configuration inconsistencies.
