Stale or Misconfigured Oracles Can Trigger DeFi Liquidations—No Hack Required
AI Market Summary
The newsletter highlights two major DeFi liquidations driven by oracle misconfiguration and stale pricing rather than oracle hacks. Aave's CAPO risk oracle reportedly set wstETH below market by ~2.85%, triggering ~$26–27M of liquidations, while Moonwell's Chainlink OEV wrapper misread cbETH/ETH as USD, causing severe underpricing and ~$1.78M bad debt. The takeaway is elevated operational/oracle-configuration risk for lending protocols.
Impact level
● Medium
Affected assets
AAVE/USDT-0.30%
AI Insight · AAVE/USDTAI Insight
▼ Bearish
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March 10, 2026 — Aave suffered a wave of liquidations after a CAPO risk-oracle configuration error set the on-chain wstETH exchange rate 2.85% below the market price. The mismatch triggered liquidations of about 10,938 wstETH, representing roughly $26–27 million in volume. Liquidators captured an estimated 499–512 ETH in profit.
February 15, 2026 — Moonwell faced a separate oracle-related incident tied to governance changes. A misconfiguration of the Chainlink OEV wrapper treated the cbETH/ETH ratio as a USD price, pushing the cbETH quote to around $1.12 versus an actual level near $2,200. As a result, 1,096.317 cbETH was liquidated and the protocol recorded roughly $1.78 million in bad debt.
