A crypto user lost roughly $50 million in a single transaction after attempting a large token swap on CoW Protocol. The wallet tried to swap $50,432,688 aEthUSDT for aEthAAVE, but extreme slippage resulted from thin liquidity across the relevant trading pools, leaving the holder with about 327 aEthAAVE tokens, worth roughly $36,000 after the trade. The value gap was quickly captured by arbitrage traders and network intermediaries.
Stani Kulechov, founder of the Aave protocol, said the trade went through despite multiple warnings presented to the user before confirming the transaction. He noted that the unusually large order triggered warnings and required explicit confirmation, and that the user accepted the risk on their mobile device. “The transaction could not be moved forward without the user explicitly accepting the risk,” he added, noting that the CoW Swap routers functioned as intended and followed standard industry practices.
Aave plans to contact the affected user and return roughly $600,000 in fees collected from the transaction. The loss comes just a few days after about $27 million was liquidated on Aave, in what some market participants say may have been caused by a temporary pricing issue involving the token wstETH.
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