Aave to Refund $600,000 to User Whose Slippage Loss Exceeded $50 Million

BlockBeats News, March 13th, Aave founder Stani.eth responded to 「A User's Purchase of AAVE Resulting in Slippage Loss of Over $50 Million」: Given the abnormally large size of the single order, the Aave interface, like most trading interfaces, will warn users of unusual slippage and require confirmation through a checkbox. The user acknowledged the warning on a mobile device, accepted the high slippage, proceeded with the exchange, and ultimately received only about 324 AAVE. Transactions must be confirmed through a checkbox to explicitly accept the risk to proceed.

The CoW exchange router worked as expected, and the integration followed industry standard specifications. However, while the user was able to proceed with the exchange, the end result was clearly far from optimal. Similar events do occur in DeFi, but the scale of this transaction is much larger than what is typically seen in the space. We sympathize with the user and will attempt to contact the user and refund the $600,000 fee charged in the transaction.

The key takeaway is that while DeFi should remain open and permissionless, allowing users to trade freely, the industry can still establish additional protective measures to better safeguard users. Our team will explore ways to enhance these protection measures in the future.