Svmuu News: A crypto user lost approximately $50 million in a token swap transaction on Thursday. On-chain data shows that the user attempted to swap about $50.43 million worth of aEthUSDT for aEthAAVE via the CoW Protocol. Due to insufficient depth in the relevant liquidity pool, the transaction experienced over 99% slippage. The user ultimately received only about 327 aEthAAVE, valued at roughly $36,000, with the difference being captured by arbitrage traders and network intermediaries.
Aave founder Stani Kulechov posted on X, stating that the user attempted to purchase AAVE with $50 million USDT through the Aave interface. Because the single order size was exceptionally large, the interface issued an extreme slippage warning to the user, requiring them to check a confirmation box. The user accepted the warning on a mobile device and proceeded with the transaction. Kulechov noted that the CoW Swap router functioned as expected, adhering to standard industry operational procedures, but the outcome was clearly undesirable. Kulechov stated that Aave plans to contact the user and refund the approximately $600,000 in fees collected from this transaction.
This incident occurred just days after approximately $27 million in positions on Aave were liquidated. Some market participants believe this liquidation may have been related to a temporary pricing issue with wstETH.