Aave Introduces “Aave Shield” After $50M Swap Loss

[bonk]

Aave is rolling out a new safety feature called Aave Shield following a $50 million trading loss on its interface last week. The feature will automatically block swaps with a price impact above 25%, requiring users to manually disable it if they wish to proceed with high-risk trades.

The incident involved a user attempting to swap $50.4M in USDT for AAVE via CoW Swap, but due to low liquidity and infrastructure failures, the user received only $36,500 worth of AAVE. A Maximal Extractable Value (MEV) bot executed a sandwich attack during the transaction, profiting nearly $10 million.

Aave highlighted that multiple warnings were ignored, including alerts for “high price impact” and a confirmation acknowledging a potential 100% value loss. The protocol emphasized that the new Shield feature aims to prevent similar losses for other users.

[chainsniff]

bro lost 50M, thats 50 millions