$50M Aave Trade Turns into Catastrophic Loss for Cryptocurrency Trader
A high-slippage transaction involving AAVE (AAVE) tokens has left a cryptocurrency trader with a significant loss, totaling $50 million in USDT (USDT). The trade was executed through the Aave interface and routed via CoW DAO.
The trading interface displayed clear alerts about the extreme price impact and required the user to explicitly acknowledge the risk before proceeding. Despite these warnings, the trader confirmed the transaction on a mobile device and completed the swap, accepting the high slippage conditions.
The unusual order size pushed the price far beyond expected levels, resulting in 'slippage,' where the final execution price diverged sharply from the initial quote. In this case, the large order left the user with only 324 AAVE tokens despite committing tens of millions of dollars in stablecoins.