PANews, March 15: On March 12, a user lost nearly $50 million when exchanging $50 million in USDT for AAVE via the Aave interface, failing to notice the slippage warning and ultimately receiving only approximately $360,000 worth of AAVE. Aave stated that the trade occurred on the third-party platform CoW Swap and that the Aave core protocol was unaffected. Additionally, Aave will deploy a new feature, Aave Shield, which will by default block exchanges with price impact exceeding 25%. Previously, it was reported that a whale lost nearly $50 million when exchanging USDT for AAVE due to ignoring the slippage warning.
Aave to Launch Aave Shield Feature to Block Exchanges with Over 25% Price Impact
PANewsShare
Summary
Aave announced the upcoming launch of Aave Shield, a new feature that will block trades on exchanges with a price impact exceeding 25%. This follows a $50 million loss on March 12, 2026, when a user converted USDT to AAVE via CoW Swap. Aave’s core protocol remained unaffected. The update introduces fresh token launch news and underscores ongoing developments in DeFi safety amid evolving crypto price dynamics.
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