Aave releases a recap of the Swap incident: it wasn't a slippage issue; they plan to launch the "Aave Shield" protection mechanism.

Aave released a recap report on the March 12th Swap incident on its X platform, stating that a user attempted to exchange approximately 50.43 million aEthUSDT (worth approximately $50.43 million USD) for aEthAAVE via the integrated CoW Swap routing on its front-end interface. However, due to the transaction size far exceeding market liquidity, the user ultimately only received approximately 327 aEthAAVE, worth about $36,000. The on-chain execution process shows that the transaction funds were first exchanged for WETH in the Uniswap V3 USDT/WETH pool, and then AAVE was purchased through the SushiSwap AAVE/WETH pool, ultimately generating approximately 331 AAVE which was deposited into Aave V3 for minting aEthAAVE. Aave stated that this transaction occurred on the third-party CoW Swap protocol and did not affect the security of Aave's core lending protocol. The transaction quotes showed a price impact of up to 99.9%, and the interface explicitly warned of a "potential 100% value loss," requiring users to confirm before proceeding. The root cause of this incident was the extreme price impact of a large transaction in a low-liquidity market, not slippage. As an improvement measure, Aave plans to introduce the "Aave Shield" protection mechanism, which by default blocks swap transactions with a price impact exceeding 25%. Users must manually disable this protection to continue high-risk trading. Additionally, this transaction incurred approximately $110,000 in swap fees; Aave stated that if the user contacts them and completes the verification process, they will consider refunding the relevant fees.