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Lido: The Aave Liquidation Event is unrelated to wstETH and the Lido protocol, user funds will be fully reimbursed

2026.03.11 18:13:25

March 11 – Lido announced Wednesday that a configuration error in Aave’s CAPO oracle led to the liquidation of wstETH in E-Mode, resulting in an approximate 345 ETH loss. Notably, no bad debt was incurred, and all affected users will receive full compensation. The issue stemmed from a mismatch between the wstETH:USD price boundary quoted by the CAPO oracle and the price used by the Aave market, which triggered the liquidation mechanism. Lido emphasized the error is unrelated to wstETH’s underlying asset or the Lido protocol itself, and is isolated to the CAPO oracle’s market price reference. The problem has been promptly identified and rectified to prevent future incidents. Additionally, Lido’s Earn products—including stRATEGY and GGV—were unaffected by the liquidation, with user funds remaining secure. Aave and Lido will continue to closely monitor market conditions to safeguard user assets and update risk control measures as needed.
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