A user lost approximately $50 million in a single transaction due to extreme slippage

CycleProphet

2026-03-13 00:25:47

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Deep Tide TechFlow News, March 13 — According to CoinDesk, a user experienced extreme slippage and lost approximately $50 million when executing a single token swap through the Aave interface due to insufficient liquidity in the pool.

On-chain data shows that the user attempted to swap about $50.43 million worth of aEthUSDT (interest-bearing tokens received when depositing USDT into the Aave protocol) for aEthAAVE via CoW Protocol. Due to extremely limited liquidity in the relevant trading pools, the transaction incurred over 99% slippage, and the user ultimately received only about 327 aEthAAVE, worth approximately $36,000. The remaining difference was quickly captured by arbitrage bots and network intermediaries.

Aave founder Stani Kulechov stated that prior to executing the trade, the interface issued multiple warnings about abnormal slippage and required the user to explicitly confirm the risk by checking a box, which the user completed on a mobile device. He also noted that the CoW Swap router operated as expected and in line with industry practices, but the outcome was “clearly far from ideal.”

Kulechov said Aave plans to contact the affected user and refund approximately $600,000 in fees generated from this transaction.

AAVE3.94%

COW-0.78%

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