Lido responds to Aave liquidation event: Oracle price error led to liquidation, no issues with Lido protocol

Lido announced that Aave's CAPO oracle misquoted yesterday, leading to incorrect price boundaries for wstETH:USD in the AAVE market, which triggered liquidation events. There was no bad debt, and all affected users will be fully compensated.

These erroneous price boundaries are unrelated to wstETH as the underlying asset and do not indicate any issues with the Lido protocol. The Lido Earn products, including stRATEGY and GGV, were not affected by this liquidation, and user funds remain secure.