After $50 Million Flash Loan Disaster: Aave Launches Protection Mechanism: Automatically Blocks Swaps Exceeding 25% Price Impact
Aave experienced extreme slippage losses of up to $50 million, and the official team announced the launch of a new feature called Aave Shield, which will automatically block any swaps with price impact exceeding 25% in the future.
(Background: Aave's Largest Slippage in History! Whale Vaporizes $50 Million, A DeFi Disaster That Three Defensive Lines Couldn't Stop)
(Additional Context: Detailed Explanation of DeFi Lending "Liquidation Mechanisms": Compound, Maker, AAVE Risk Overview)
Table of Contents
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Aave.com Swap Feature Background
Technical Analysis
On-Chain Execution Process
Root Cause Analysis
Our Response and Next Steps
Earlier this week, a whale converted $50.43 million USDT to A through Aave in a single transaction