High Slippage Event Results in $50M Loss on Aave Protocol Interface

An Aave protocol user experienced massive slippage converting $50 million USDT, receiving only 324 AAVE tokens due to insufficient liquidity depth. The incident highlights MEV risks and liquidity constraints in automated market maker systems, prompting Aave to propose a partial fee reimbursement of $600,000.

Source: Decrypt   Read Full Story