$50M AAVE Trade Goes Awry with Massive Slippage Loss

A massive cryptocurrency trade gone wrong has left a trader nursing a $50 million loss after attempting to purchase AAVE tokens using USDT. The high-slippage transaction, executed through the Aave interface and routed via CoW DAO, returned only 324 AAVE tokens.

According to Aave founder Stani Kulechov, the trading interface displayed clear warnings about the extreme price impact and required the user to explicitly acknowledge the risk before proceeding. The trader confirmed the transaction on a mobile device and completed the swap, accepting the high slippage conditions.

Kulechov noted that such events can occur in decentralized finance, though transactions of this magnitude are rare. To mitigate some of the impact, Aave plans to refund approximately $600,000 in fees generated by the trade while attempting to contact the affected user.