Aave and CoW Swap Offer Divergent Explanations for $50 Million Incident

PANews posted on X (formerly Twitter). Aave and CoW Swap have provided differing analyses regarding a $50 million incident. CoW Swap released a report highlighting a series of systemic failures, including a hard-coded gas limit that led to optimal quote verification failure, two unexecuted winning bids by the best solver, and a suspected leak of transactions from a private mempool. The initial phase of the incident could have potentially saved $5-6 million. On-chain data reveals that block builder Titan Builder extracted approximately $34 million in ETH, while another MEV bot profited around $9.9 million through a sandwich attack. Last week, Aave attributed the losses to an 'illiquid market,' emphasizing that users manually confirmed 99.9% of the price impact warnings. Aave also announced the launch of 'Aave Shield,' which automatically blocks swaps with a price impact exceeding 25%.