On March 11th, the decentralized lending protocol Aave experienced a large-scale liquidation event due to a misconfiguration of the price oracle. Approximately 34 accounts were liquidated, involving $26 million. The issue stemmed from desynchronized CAPO mechanism settings, which caused a brief misjudgment of the wstETH price. Although some users were affected, the Aave protocol remained financially unaffected and will initiate a compensation mechanism. Following the incident, the market reaction was stable, and the AAVE price increased.

Ethereum's liquid staking protocol Lido Finance has paused new bridging deposits after discovering a potential security vulnerability in the wstETH bridging contract on the ZKsync network. Currently, the vulnerability has not been exploited, and user assets are safe. Lido is working on a fix through decentralized governance, with a governance vote expected to take place in late March 2026. This incident has caused short-term pressure on the related tokens.

Lido officially disclosed that the ZKsync wstETH bridge contract has a potential vulnerability, but it has not been exploited, and holders are unaffected. Lido has paused new fund deposits to the contract and plans to fix and restore functionality after the next governance vote.

Odaily Planet Daily News: Aave Labs has initiated an ARFC proposal on the governance forum, proposing to deploy Aave V3 on the MegaETH chain to support bridged btc.b, ETH, USDM, USDT0, cUSD, iTRY, wstETH, ezETH, rsETH, USDe, sUSDe, stcUSD, as well as native

Odaily News According to PeckShield monitoring, after ETH fell below 2900 USD, a certain Whale's wstETH position was liquidated, valued at approximately 6.52 million USD.

Odaily Planet Daily reports that the Lido DAO community has initiated a liquidity repurchase proposal to introduce an automatic repurchase mechanism for LDO. This mechanism will deploy LDO/wstETH liquidity across the entire range in a Uniswap-v2 style LP position and will be managed on Aragon.

Odaily News According to PeckShieldAlert monitoring, as the price of ETH fell below 3200 USD, a previous Whale on Aave (Address: 0xa740...b5b6) had their wstETH collateral Position massively liquidated. This account had previously borrowed USDT and USDC using wstETH as collateral, and as the price fell, the liquidation mechanism was triggered, resulting in a total liquidation of approximately 23.44 million USD in wstETH Position.

PANews, November 4th - According to monitoring by CertiK, the Moonwell lending contract has been subjected to multiple attack transactions. The attacker exploited the incorrect price returned by the Oracle Machine (approximately $5.8 million), borrowing over 20 wstETH repeatedly by using only Flash Loans of about 0.02 wrstETH and depositing them, profiting 295 ETH (approximately $1 million).