Aave will introduce the Aave Shield feature, which by default blocks Swaps that would result in a price impact of over 25%.
BlockBeats News, March 15th, Aave released a Swap incident retrospective, stating that a user exchanged approximately $50.43 million aEthUSDT for approximately $36,000 aEthAAVE through the CoW Swap route on the Aave frontend, with a price impact of approximately 99.9%.
Aave stated that the transaction occurred on a third-party Swap protocol and did not affect the core lending protocol. The reason for the incident was that the user executed a large order in a market with extremely low liquidity and accepted a high-risk quote. Aave announced that it will introduce the Aave Shield feature, which will by default prevent Swaps with price impacts exceeding 25%.
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