Aave Considers Adjusting Token Lending Amid Oracle Price Discrepancies

According to PANews, Aave is currently voting on setting the Loan-to-Value (LTV) ratio to zero for several tokens, including $CRV, $UNI, $ZK, $BAL, $LDO, 1INCH, $METIS, and $CAKE, and removing their lending options. This decision comes in response to significant price discrepancies during a recent market downturn on October 11, UTC+8, where oracle updates caused price jumps between 15% and 50%, leading to delayed price feeds and increased risk of bad debt. DeFi researcher Ignas highlighted that Chainlink's price feeds showed a discrepancy of approximately 58% compared to decentralized exchange (DEX) prices, resulting in arbitrage opportunities that led to around $200,000 in losses. Over the past three months, these assets have generated collateral income of approximately $14,000, with borrowing income remaining low, such as an annualized ~$80,000 for CRV. Ignas, who is acting as a delegate, has voted in favor of these changes to mitigate risks associated with oracle price discrepancies and improve the platform's stability.