Aave Reviews CoW Swap Trade With 99.9% Price Impact on Aave Frontend

Aave and CoW Swap released conflicting analyses of the March 12 trade in which a user swapped more than $50 million of aEthUSDT for about $36,000 of aEthAAVE through CoW Swap at a quote 99.9% below the expected market clearing price. Aave said insufficient market liquidity, rather than slippage, was the main cause of the loss, while CoW Swap attributed the outcome to outdated gas limits and possible leakage into a private mempool. New reporting adds that on-chain data showed Titan Builder extracted about $34 million in ETH and another MEV bot made about $9.9 million. Aave has said the protocol itself was not at risk because the trade occurred off-protocol through external swap routing, and it still plans to add Shield to block swaps with price impact above 25% by default and refund about $110,368 in related fees after verification.