aethaave

Aave released a user event report on the loss from exchanging aEthAAVE. A user attempted to exchange approximately $50.43 million worth of aEthUSDT for aEthAAVE through the CoW Swap router integrated into the Aave interface. Due to the user's order size far exceeding the market's available liquidity, the CoW Swap quote showed a price impact of up to 99.9%. The interface displayed a strong warning and required the user to check the "Confirm potential loss of 100% value" checkbox. After manually confirming on a mobile device, the user still proceeded with the transaction and ultimately received only about 327 aEthAAVE (worth approximately $36,000).The Aave protocol itself was not affected; the loss occurred at the third-party protocol level. This transaction incurred about $110,000 in fees, which Aave stated would be refunded after the user completes identity verification. In response to this incident, Aave announced the upcoming launch of the "Aave Shield" feature, which will by default intercept transactions with a price impact exceeding 25% to prevent users from suffering significant losses due to operational errors.

CoW DAO responded to the incident where "a certain whale lost approximately 50.39 million dollars due to excessive slippage when exchanging aEthAAVE," stating that "no DEX, DEX aggregator, public liquidity pool, or private liquidity pool (or their combination) can execute this transaction at a price close to a reasonable level. However, preventing users from trading would deprive them of their choices and could lead to extremely poor outcomes in certain situations (such as market crashes).Such transactions indicate that the DeFi user experience has not yet reached the level necessary to protect all users. The team is currently exploring how to balance strong security measures with maintaining user autonomy. We will also refund any fees paid to CoW DAO due to this transaction."According to previous news from ChainCatcher, a user lost approximately 50 million dollars in a single transaction due to slippage, and the founder of Aave stated that the interface had issued multiple warnings.