DeFi Shock: Aave Oracle Failure Triggers $27 Million "Misunderstanding" Liquidation
Today, a major technical incident occurred in the DeFi sector, as leading lending protocol Aave confirmed that due to a misconfiguration in its risk oracle system (CAPO), the exchange rate of wstETH was incorrectly underestimated by approximately 2.85%.
This "blunder" directly triggered the forced liquidation of approximately $27,100,000 in wstETH positions.
Aave founder Stani Kulechov issued a statement today, promising to use DAO treasury funds to fully compensate affected users. Although the protocol itself did not incur bad debts, this incident occurred during a sensitive period just after the Aave Chan Initiative (ACI) announced its exit from governance, exacerbating tensions in internal governance.