Lido: The Aave Liquidation Event is unrelated to wstETH and the Lido protocol, user funds will be fully reimbursed
BlockBeats News, March 11th. According to official sources, Lido stated that Aave's CAPO oracle had a configuration error, causing wstETH to be liquidated in E-Mode, resulting in a loss of approximately 345 ETH. Fortunately, this incident did not result in any bad debt, and all affected users will receive full compensation. The error originated from a mismatch between the price boundary of wstETH:USD quoted by the CAPO oracle yesterday and the price used by the Aave market, triggering the liquidation mechanism.
Lido officials emphasized that this pricing boundary error is unrelated to the underlying asset of wstETH and does not involve any issues with wstETH or the Lido protocol. This issue is limited to the market price reference of the CAPO oracle, has been promptly identified and rectified to prevent similar incidents from recurring.
Additionally, Lido's Earn products, including stRATEGY and GGV, were not affected by this liquidation event, and user funds remain secure. Aave and Lido will continue to closely monitor the market situation to ensure the safety of user assets and promptly update risk control measures.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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