@0xabu
Someone turned $50.4 million in USDT into just ~327 AAVE tokens worth only about $36,000 — a massive loss in value during a single transaction.
1/1 The victim's action (the bad trade):
A wallet holding a huge amount of USDT (wrapped as aEthUSDT or similar in Aave) initiated a complex operation. It withdrew/burned ~50,432,688 USDT from Aave.
Then it immediately swapped that entire ~$50.4M USDT for 327.24 AAVE tokens through CoW Protocol
The effective price paid was absurdly high: roughly $154,000 per AAVE token (when AAVE's real market price was much lower, around ~$110).
How the price got so bad
CoW Protocol uses a batch auction system and solvers to find the best execution. But in this case, the swap was so large (50M+ USDT → AAVE) that it would have needed deep liquidity. Instead of getting a fair price, the trade executed at an extremely unfavorable rate on a path involving Sushiswap. This created a temporary, massive price imbalance in the AAVE pool (AAVE price spiked hugely in that pool).
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