Aave has released a report on user losses from swapping aEthAAVE. The platform will also launch a ne

Aave Issues Post-Mortem on $110K 'aEthAAVE Swap' Loss: User Ignored Warnings, Shield Feature Coming

Aave has published a report on the recent aEthAAVE swap incident that left a user with significant losses. The cause? A large transaction routed through a thin liquidity market, triggering extreme price slippage. The user was warned—the Swap button was greyed out until they acknowledged the risk (including the possibility of total loss). Internal logs show they checked the box and accepted on mobile.

The trade racked up $110,368 in fees. If the user reaches out and verifies identity, that portion will be returned.

Moving forward, Aave is rolling out Aave Shield, a default-on safety feature that blocks any swap with over 25% price impact. Want to take the risk? You'll have to manually turn it off. Warnings now have teeth.