Aave wstETH oracle on L2s

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Junion experienced a significant financial loss due to a delay in the stETH oracle update on Aave and proposed a solution to prevent future issues, including switching the oracle and refunds for affected users. Bgdlabs acknowledged the problem, revealed plans for an update, but expressed uncertainty about refunds, while Kuplynx argued for at least partial compensation if the issue was due to an Oracle fault.

The discussion primarily revolves around a significant financial loss experienced by Junion due to a delay in the stETH oracle update on Aave while borrowing ETH with wstETH on eMode1. Junion proposed a solution to prevent such issues in the future, suggesting that Aave should switch the oracle from Chainlink stETH/USD to wstETH/ETH on Arbitrum and Optimism, similar to the Ethereum mainnet. This change, according to Junion, could protect future users from unnecessary losses on layer 2 deployments. Additionally, Junion advocated for refunds for users who suffered from this issue.

In response, Bgdlabs acknowledged the problem and explained that the pricing of price-correlated assets is not yet unified across all networks2. They revealed that they have collaborated with Chainlink to release the required feeds and plan to propose an update in the following week. However, they expressed uncertainty about the refund proposal, stating that users with high Loan-to-Value (LTV) should be aware of such risks.

The discussion also included Kuplynx's viewpoint, who argued that if the issue was due to an Oracle fault, users should receive at least partial compensation3. The topic concluded without a definitive resolution, but with the anticipation of an update proposal from Bgdlabs in the upcoming week. The question of refunds for affected users remains open and contentious.

Posted 7 months ago

Last reply 7 months ago

Summary updated 2 months ago

Last updated 06/12 00:43