Security | March 10, 2026

When the Oracle Blinks, the Borrowers Pay

Aave relies on outside price feeds to decide when loans are safe. One bad reading was enough to sell out borrowers who had done nothing wrong.

Aave lets users borrow against crypto collateral. To know whether those loans are safe, it depends on outside price feeds. On March 10, one CAPO oracle feed briefly reported wrapped staked Ether the wrong way and roughly $27 million in positions were liquidated.

If you were one of those borrowers, the system could sell your collateral because the input was wrong even though the contracts themselves kept following the rules. Aave stayed solvent. Users still lost money. That is the difference between a protocol failure and a data failure, and the second one can hurt just as much.