The decentralized finance (DeFi) lending protocol Aave experienced a significant technical issue on March 10, 2026, when a glitch in its risk oracle resulted in approximately $27 million in liquidations. While the protocol itself remained unscathed, the event has renewed scrutiny on oracle reliability in DeFi amid ongoing governance tensions. Meanwhile, the AAVE token shows resilience, but other market conditions could see bears eye recent lows. Aave suffers $27 million liquidations event The news is that the losses occurred after Aave’s Collateral Asset Price Oracle (CAPO) suffered a configuration error. CAPO is an external risk management tool, and an inconsistency between a stale snapshot ratio and its associated timestamp triggered a mismatch that saw the oracle undervalue wstETH by 2.
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