wstETH CAPO Oracle Incident User Reimbursement
01Summary
Refund 513.19 ETH to 34 users who were erroneously liquidated during a wstETH CAPO oracle misconfiguration incident on Ethereum Core and Prime instances. The DAO's net cost is 358.56 ETH after recoveries of 141.60 ETH from Titan Builder and 13.32 ETH in liquidation fees. The proposal approves the AFC to distribute refunds from the Aave Ethereum Collector.
- Type
- treasury allocation
Key changes
- Approve 513.19 ETH WETH allowance on Aave Ethereum Collector for AFC to distribute refunds to affected users(high)
- Reimburse 34 accounts for erroneous liquidations caused by wstETH CAPO oracle parameter misalignment (snapshotRatio and snapshotTimestamp mismatch)(high)
- Total loss includes 382.76 ETH oracle profit (loss to users) and 129.72 ETH liquidation bonus (loss to users)(high)
Notable concerns
- Oracle misconfiguration caused ~2.85% deviation between reported and actual wstETH/stETH exchange rate
- Net DAO cost of 358.56 ETH could decrease as additional recovery efforts from builders are processed
- ~10,938 wstETH was liquidated across affected accounts
Generated by Kvorum
02Description
Simple Summary
This proposal refunds users who were erroneously liquidated during the wstETH CAPO oracle misconfiguration incident on Ethereum Core and Prime instances. The total refund amounts to 513.19 ETH, with a net cost to the DAO of 358.56 ETH after recoveries, a figure that should decrease as more recoveries are processed.
Motivation
A configuration misalignment between the snapshotRatio and snapshotTimestamp parameters in the wstETH CAPO risk oracle caused the reported wstETH/stETH exchange rate cap to fall approximately 2.85% below the actual market rate. This triggered erroneous liquidations across 34 accounts on the Ethereum Core and Prime instances, totaling ~10,938 wstETH liquidated.
As detailed in the Post-Mortem, the root cause was a mismatch between two interdependent Oracle parameters, snapshotRatio and snapshotTimestamp. The issue was promptly identified and resolved through Risk Steward intervention.
The affected users bear no responsibility for these liquidations, which were the direct result of a protocol-level configuration error. Making these users whole is a straightforward decision for the DAO and reinforces the trust that underpins Aave's position as the leading lending protocol.
Loss Breakdown
| Category | ETH |
|---|---|
| Oracle profit (loss to users) | 382.76 |
| Liquidation bonus (loss to users) | 129.72 |
| Goodwill allowance | 1 |
| Total loss | 513.19 |
| Recovered from Titan Builder | (141.60) |
| Recovered liquidation fees | (13.32) |
| Net cost to the DAO | 358.56 |
Recovery efforts remain ongoing. The DAO is actively pursuing additional funds from builders involved in the incident.
Specification
Create allowance on the Aave Ethereum Collector for the AFC to distribute refunds to affected users:
- Method:
approve()on the Aave Ethereum Collector - Spender: AFC
0x22740deBa78d5a0c24C58C740e3715ec29de1bFa - Amount: 513.19 ETH
- Asset: WETH
0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2
Upon AIP execution, the AFC will distribute the appropriate refund amount to each affected user address.
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot: Direct-to-AIP
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal description details a specific, well-scoped action: an approve() call on the Aave Ethereum Collector granting the AFC address a 513.19 WETH allowance, consistent with Aave's standard incident-reimbursement pattern. However, the only decoded on-chain action provided is a generic execute() (fallback) call to a single payload contract address, with no decoded internal calldata, parameters, or sub-actions. This is typical for Aave governance proposals, where the top-level governance action simply triggers a payload contract that internally performs the approve() call and any other logic — but it means the actual spender, amount, and asset referenced in the description cannot be independently verified from the calldata provided. There is no evidence of contradiction (no mismatched target, amount, or omitted major action visible), but there is also insufficient decoded detail to confirm the specifics match. Given this lack of visibility into the payload's internal execution, confidence is set to low rather than flagging any specific discrepancy, since none can be substantiated from the data given. The overall pattern (single payload execute() call) is consistent with how such reimbursement proposals are typically implemented, so no red flags are raised, but delegates should be aware that full verification would require inspecting the payload contract's source code (linked in the References section) rather than relying solely on this decoded action alone.
Generated by Kvorum
04Actions
- Target
- 0x3ef2…9429
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 570x57ab…2922 | For | 283.4K | 52.68% | — | 8mo ago |
| 8B0x8b37…2a22 | For | 75.8K | 14.08% | — | 8mo ago |
| 2C0x2cc1…4df1 | For | 64.7K | 12.02% | — | 8mo ago |
| B90xb933…8dd1 | For | 43.8K | 8.14% | — | 8mo ago |
| 3D0x3ddc…05b0 | For | 20.5K | 3.82% | — | 8mo ago |
| EC0xecc2…6ac9 | For | 12.4K | 2.30% | — | 8mo ago |
| 7A0x7ae1…e585 | For | 10.5K | 1.94% | — | 8mo ago |
| 070x0703…961b | For | 10K | 1.86% | — | 8mo ago |
| EZezr3al.eth0x8659…7d0e | For | 10K | 1.85% | — | 8mo ago |
| 080x086b…8f85 | For | 7K | 1.30% | — | 8mo ago |
| 050x0579…4048 | For | 1 | 0.00% | — | 8mo ago |
| 2F0x2f2f…f78a | For | 0 | 0.00% | — | 8mo ago |
07Forum
No forum thread is confidently linked to this proposal.
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