⚠️Warning: Trader loses nearly 50 million USD due to slippage
A user swapped 50 million USDT for AAVE on CoW Swap but encountered extremely high slippage (~99.9%), resulting in them receiving only about 36,200 USD worth of AAVE.
The incident is believed to be related to MEV/trading bots, causing the trader to nearly lose the entire 50 million USD in just a few seconds.
Stani Kulechov – the founder of Aave – stated that the interface warned about slippage and requested confirmation, but the user proceeded with the trade anyway. Therefore, this is not a protocol error but a risk due to user behavior.
Nevertheless, Aave still commits to reimbursing about 600,000 USD in transaction fees as a goodwill gesture towards those affected.