BlockBeats News, March 13th, CoWSwap responded officially to “A User’s $50M+ AAVE Purchase Slippage Loss”: Earlier today, a trader attempted to swap 50 million aEthUSDT for aEthAAVE via Aave’s exchange interface (powered by the CoW Protocol). Despite a clear warning indicating the user would lose nearly all transaction value and must explicitly choose to proceed with the trade after acknowledging the warning, the user chose to proceed with the swap.
It should be noted that the CoW Protocol is a decentralized trading platform aggregator that routes trades through almost all major public and private liquidity sources. No DEX, DEX aggregator platform, public liquidity pool, or private liquidity pool (or any combination thereof) could have executed this trade at anywhere near a reasonable price.
Preventing users from transacting would be a deprivation of choice and could lead to severe consequences in some cases (e.g., market collapse). That being said, such trades highlight that the DeFi user experience has not yet reached a level where all users are protected. As a team, we are reevaluating how to strike a balance between robust safeguards and maintaining user autonomy. We will also refund any fees paid to the CoW DAO due to this transaction.
