Data: A user lost approximately $50 million in a single transaction due to slippage, Aave founder says the interface issued multiple warnings

ChainCatcher reports that a crypto user lost approximately $50 million in a token swap transaction on Thursday. On-chain data shows that the user exchanged about $50.43 million worth of aEthUSDT for aEthAAVE via CoW Protocol. Due to insufficient liquidity pool depth, the slippage exceeded 99%, resulting in only about 327 aEthAAVE received, worth approximately $36,000. The difference was captured by arbitrage traders and network intermediaries.

Aave founder Stani Kulechov posted on X platform stating that the user used the Aave interface to purchase AAVE with $50 million USDT. Due to the unusually large order size, the interface issued an extreme slippage warning and required confirmation. The user accepted the warning on a mobile device and proceeded with the transaction.

Kulechov said that the CoW Swap router operated as expected and followed industry-standard procedures, but the outcome was clearly undesirable. He stated that Aave plans to contact the user and refund the approximately $600,000 fee collected from the transaction. A few days before this incident, about $27 million in positions on Aave were liquidated. Some market participants believe this liquidation may be related to temporary pricing issues with wstETH.