PANews reported on March 11 that, according to an analysis report released by Chaos Labs, the recent $27 million liquidation event on Aave was caused by a configuration issue with the CAPO risk oracle. The root cause lies in the inconsistency of update constraints at the smart contract level: the `snapshotRatio` parameter, limited by an on-chain constraint of only 3% growth every 3 days, could not be directly updated from approximately 1.1572 to the target value of approximately 1.2282, but could only increase to approximately 1.1919; while `snapshotTimestamp` successfully updated to a timestamp from 7 days prior. This misalignment between the ratio and the timestamp caused the CAPO-calculated exchange rate ceiling (approximately 1.1939) to be about 2.85% lower than the actual market exchange rate, triggering the liquidation of approximately 10,938 wstETH.
No bad debts were incurred in the protocol during the incident. Chaos Labs and BGD Labs immediately reduced the wstETH borrowing cap for affected instances to 1 and restored the exchange rate by manually aligning parameters via Risk Steward. 141.5 ETH has been recovered through BuilderNet and will be used to compensate affected users. The remaining amount will be covered by the Aave treasury, and the amount that needs to be temporarily compensated by the DAO is expected to be no more than 345 ETH.
