LOW RISK
$26.9 Million Erroneously Liquidated On Aave After Chaos Labs Oracle Bug
Users of the Aave defi lending protocol who had borrowed from the wstETH/stETH pool suffered erroneous liquidations when a price oracle from Chaos Labs reported an inaccurately low price ratio between
Our Analysis
Users of the Aave defi lending protocol who had borrowed from the wstETH/stETH pool suffered erroneous liquidations when a price oracle from Chaos Labs reported an inaccurately low price ratio between the two assets. The oracle bug caused some loans to report that they were below the required "health factor" (the ratio between the assets loaned and the amount of collateral provided by the borrower), triggering forcible liquidations across the platform amounting to $26.9 million.Chaos Labs, presumably embarrassed to have lived up to its name, promised to reimburse users whose positions were improperly liquidated.
"Oracle error adds to turmoil at DeFi giant Aave"
, Protos
This development reflects the continuing evolution of the cryptocurrency ecosystem. As the space matures, staying informed about both opportunities and risks remains essential for all participants.
Web3 Is Going Great • March 11, 2026
Rug Pull Score
1.4/10
Based on our analysis
🚩 Red Flags Identified
- Significant liquidation event
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.
