The decentralized lending platform Aave experienced a temporary pricing issue involving the token wstETH, causing about $27 million in liquidations over the past 24 hours. Some believe this may have been due to a price update in an oracle system used by Aave to determine collateral value. The issue may also be related to the token issued by Lido, which represents staked ether and accrues rewards over time. Chaos Labs, a risk-management firm, stated that the issue was caused by a mismatch between stale parameters stored in a smart contract, including a reference exchange rate and its associated timestamp, causing the CAPO system to temporarily calculate a maximum allowed exchange rate lower than the real market value of wsteth. The incident was not directly attributed to Aave, but was instead triggered by a configuration issue in the protocol’s CAPO risk oracle.