ChainThink reports that on March 15, Aave released a post-mortem of the Swap event, stating that a user executed a token swap on Aave’s frontend via CoW Swap, exchanging approximately $50.43 million in aEthUSDT for approximately $36,000 in aEthAAVE, resulting in a price impact of about 99.9%.
Aave stated that the transaction occurred on a third-party swap protocol, and the core lending protocol was unaffected. The incident was caused by a user executing an oversized order in a market with extremely low liquidity and confirming a high-risk quote. Aave said it will introduce the Aave Shield feature, which will by default block swaps with price impacts exceeding 25%.