A user bought AAVE resulting in a slippage loss of over $50 million

BlockBeats News, March 13th: A user swapped approximately $50.43 million worth of aEthUSDT for AAVE through CoWSwap, but due to a slippage of over 99%, they only received about 327 aEthAAVE, worth around $36,000. Community analysis indicates that this swap likely utilized AAVE's UI for collateral swapping, converting aEthUSDT to aEthAAVE, representing depositing USDT and AAVE into the AAVE protocol. The primary issue was attributed to the poor routing strategies employed by most aggregators, as CoWSwap seemingly did not provide accurate pricing for aEthAAVE.

Aave founder Stani.eth noted that due to the unusually large transaction size, the interface issued an extreme slippage warning to the user, requiring confirmation through a checkbox. After receiving and acknowledging the warning on a mobile device, the user proceeded with the transaction. The CoW Swap router operated as expected, following industry-standard procedures, but the outcome was evidently undesirable. Stani.eth mentioned that Aave plans to reach out to the user and refund the roughly $600,000 fee taken from the transaction.