Aave Targets Swap Safety With New Feature After $50 Million Incident
BeInCrypto
Aave is launching "Aave Shield" to prevent large swap losses, following a $50 million incident caused by an illiquid market.Summary
Decentralized lending protocol Aave is introducing a new feature, "Aave Shield," to enhance swap safety after a user lost approximately $50 million in a token swap. The feature will automatically block swaps with a price impact exceeding 25%, though users can manually disable it. The incident stemmed from an illiquid market where the user received a significantly lower value than expected when swapping aEthUSDT for aEthAAVE. Aave clarified that the user was warned about the potential for 100% value loss and confirmed the transaction. The protocol itself was not at risk, and Aave collected swap fees, which they are willing to return to the user upon verification.
(Source：BeInCrypto)