Lido responded to the Aave liquidation incident: The liquidation was caused by an oracle price error, and there were no issues with the Lido protocol.

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ChainCatcher reports that Lido stated that Aave's CAPO oracle made a pricing error yesterday, causing an incorrect price boundary for wstETH:USD in the AAVE market, thus triggering a liquidation event. No bad debts were found, and all affected users will receive full compensation.

These erroneous pricing boundaries are unrelated to wstETH as the underlying asset and have no issues with the Lido protocol. Lido Earn products, including stRATEGY and GGV, were not affected by this liquidation, and user funds remain safe.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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