Aave Releases Report on "aEthAAVE Swap Loss Users": Large Transactions Routed to Low-Liquidity Markets Caused Price Impact

DeepFlowTech · 2026-03-16T01:19:09+00:00

Aave released a report stating that a user lost approximately $50.43 million when exchanging aEthUSDT for aEthAAVE, as the order size exceeded market liquidity. Although the Aave protocol was unaffected, Aave will refund the user's $110,000 in transaction fees and launch an "Aave Shield" feature to prevent similar incidents from occurring.

DeepFlowTech

2026-03-16 01:19:09

Abstract generation in progress

Deep Tide TechFlow News, March 16 — Aave released a report on the “Exchange aEthAAVE Loss User” incident. A user attempted to swap approximately $50.43 million worth of aEthUSDT for aEthAAVE via the CoW Swap router integrated into the Aave interface. Because the user’s order size far exceeded the available market 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 a box confirming “Possible 100% loss of value.” After manually confirming on a mobile device, the user continued with the transaction and ultimately received only about 327 aEthAAVE (worth approximately $36,000).

The Aave protocol itself was unaffected; the loss occurred at the third-party protocol level. The transaction incurred about $110,000 in fees, which Aave stated would be refunded after user identity verification. In response, Aave announced the upcoming launch of “Aave Shield,” a feature that will automatically block transactions with price impacts exceeding 25% to prevent users from suffering significant losses due to accidental operations.

AAVE6,53%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes