On March 15, Aave released a recap of the Swap incident, stating that a user exchanged approximately $50.43 million worth of aEthUSDT for approximately $36,000 worth of aEthAAVE when exchanging tokens on the Aave front end via the CoW Swap route, affecting the price by approximately 99.9%.
Aave stated that the transaction occurred within a third-party swap protocol, and the core lending protocol was unaffected. The incident stemmed from a user executing an excessively large order in a highly illiquid market and confirming a high-risk quote. Aave announced the upcoming Aave Shield feature, which will, by default, prevent price fluctuations from impacting swaps exceeding 25%.
