What Happens When You Ignore Slippage? One Trader Just Found Out With a $50M Swap
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March 12: a single $50M USDT order attempted to buy AAVE via the Aave interface, which uses CoW Swap routing. The interface flagged extraordinary slippage and required explicit confirmation; the trade executed poorly after the user accepted. Highlights DeFi execution and liquidity risk for large DEX-like swaps, raising slippage, routing and market-impact concerns for Aave and AAVE token.
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A user attempted to purchase the AAVE token with $50 million worth of Tether through the Aave interface on March 12, but the trade executed poorly after the user accepted a warning about extreme slippage.
According to Aave Labs founder and CEO Stani Kulechov, the transaction involved a single order of significant size placed through the Aave interface, which integrates routing infrastructure provided by CoW Swap. Because of the unusually large order size, the interface displayed a warning about extraordinary slippage and required explicit confirmation before the swap could proceed.
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