A user lost approximately $50 million in a single trade due to slippage, and the founder of Aave stated that the interface had issued multiple warnings.

Odaily Planet Daily 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 tokens received, worth approximately $36,000. The difference was captured by arbitrage traders and network intermediaries.

Aave founder Stani Kulechov posted on X 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. After accepting the warning on a mobile device, the user proceeded with the transaction. Kulechov said that the CoW Swap router operated as expected and in line with industry standards, but the outcome was clearly undesirable. Kulechov mentioned that Aave plans to contact the user and refund the approximately $600,000 in fees collected from this 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.