Data: A user lost about 50 million dollars in a single transaction due to slippage, and the Aave founder stated that the interface had issued multiple warnings.

ChainCatcher reported that a crypto user lost approximately $50 millions in a token swap transaction on Thursday. On-chain data shows that the user exchanged about $50.43 millions worth of aEthUSDT for aEthAAVE via CoW Protocol. Due to insufficient liquidity in the relevant pool, the transaction slippage exceeded 99%, resulting in the user receiving only about 327 aEthAAVE, valued at roughly $36,000. The difference was captured by arbitrage traders and intermediaries in the network.

Aave founder Stani Kulechov posted on X, stating that the user purchased AAVE with $50 millions USDT through the Aave interface. Because the order size was unusually large, the interface issued an extreme slippage warning and required the user 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 operated as expected and followed industry-standard procedures, but the outcome was clearly undesirable. Kulechov said Aave plans to contact the user and refund approximately $600,000 in fees collected from the transaction. A few days before this incident, about $27 millions in positions on Aave were liquidated, and some market participants believe the liquidation may have been related to a temporary pricing issue with wstETH.