An unidentified Cardano user attempted to swap 14.4 million ADA tokens worth just under $7 million for USDA, a stablecoin designed to trade at the value of the US dollar.
Instead of receiving the expected roughly $7 million in USDA, the trader ended up with around $847,000, according to on-chain records.
The discrepancy is attributed to low liquidity in the exchange where the trade occurred.
In low-liquidity pools on decentralized exchanges, trades can cause large price swings and leave the final execution price far worse than expected.
This effect is commonly referred to as slippage, a perennial issue in DeFi.
Earlier this year, a surge in low-liquidity memecoin trading caused more than half of Solana transactions to fail in a one-month period due to slippage.
The mispriced trade briefly pushed the USDA token above $4.84 on CoinGecko data, and the asset later rose more than 300% following the bungled swap.
USDA is a Cardano-native stablecoin backed by US dollars and dollar-denominated assets, such as short-term U.S. government bonds, and is a joint project between Encryptus, Emurgo, and BitGo Trust.
The stablecoin began trading on Minswap in March, but adoption has been tepid, with the ADA-USDA pool handling around $30,000 in daily trading volume.
Current liquidity in the pool was around $963,000 USDA and an equivalent value in ADA tokens.
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