Chaos Labs mentioned in an Aave governance autopsy that a technical incident affecting the CAPO danger oracle triggered the reported wstETH/stETH exchange-rate cap to fall beneath the legitimate market price on Ethereum Core and Prime, triggering roughly 10,938 wstETH in E-Mode liquidations.
In line with the autopsy, the issue got here from a mismatch between the snapshotRatio and snapshotTimestamp utilized by the oracle. As a result of the ratio might solely be raised regularly onchain whereas the timestamp nonetheless mirrored a 7-day-old reference level, the protocol utilized an efficient change price about 2.85% too low. Chaos Labs mentioned the incident affected 34 accounts, led to about 116 ETH in liquidation bonuses and charges plus roughly 382 ETH in revenue for third-party liquidators, and created about $26 million in liquidation quantity, although no dangerous debt accrued to the protocol.
Aave mentioned it quickly reduce the wstETH borrow cap to 1 on Core and Prime, manually realigned the oracle configuration, and has already recaptured 141.5 ETH by means of BuilderNet refunds to assist compensate affected customers. The following factor to look at is the compensation plan and any added guardrails to stop one other configuration mismatch.
Supply: Aave Governance, autopsy by Chaos Labs.
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