Aave Oracle Misconfiguration Leads to $26M in Liquidations
- A configuration incident in Aave’s oracle system led to approximately $26 million worth of liquidations.
- The protocol priced wstETH about 2.85% below its actual exchange rate, causing leveraged borrowers’ positions to appear undercollateralized.
- This resulted in the liquidation of roughly 10,938 wstETH across 34 accounts.
- Third-party liquidators gained around 499 ETH in bonuses and profits, while Aave did not incur bad debt.
- Aave responded by reducing borrow caps, correcting the oracle configuration, and recovering about 141 ETH through BuilderNet refunds.
An issue with Aave’s oracle system caused a significant mispricing of wstETH, leading to $26 million in liquidations. The problem was swiftly addressed by adjusting borrow caps and restoring accurate pricing.
Source (3.2)https://cryptobriefing.com/aave-wsteth-oracle-misconfiguration/?rand=59535
