I will start by saying I have never used anything on AAVE.
But it’s really hard to imagine this happening.
Someone used their mobile phone to swap $50 million of USDT for AAVE. They apparently ignored warnings of massive slippage that popped up on the app they use. According to a post by an AAVE dev, they managed to turn $50 million into about $35,000 worth of AAVE.
They also paid about $600k in fees to make the swap, which devs are working on getting back to him.
That still leaves him more than $49 million in the hole..
It’s extraordinary for a number of reasons.
For one, that someone with $50 million would just casually swap that amount of money on a crypto app on their phone — and that they would do carefree enough to ignore the slippage warnings.
Even at lesser sums of money, slippage is something a crypto investor needs to pay attention to. In smaller sums, it’s usually a difference in price from the time you initiate a trade to the time it actually goes through.
But the bigger concern is low liquidity. Especially with larger sums. The lower the liquidity and the higher the sum being swapped, the bigger the chance for massive slippage.
Swapping $50 million at once on a chain the size of AAVE? That’ll do it.
Most wallets or Decentralized Exchanges (DEXs) will give you a warning.
For smaller amounts, it’s a minor concern; for large ones? Take heed!
Our top picks for crypto news for this week:
Enel Group, Europe's largest energy supplier, tokenizes solar panels on the Algorand blockchain to expand access to sustainable energy for Italian residents, as discussed by CEO Staci Warden with Algorand Board Chair Bill Bar at the Abundance360 summit. Link: https://x.com/AlgoFoundation/status/2032124682724573587
Polygon network accounts for 63% of all x402 Facilitators activity, indicating substantial adoption of the agentic payments standard on the platform. Link: https://x.com/cryptodotnews/status/2032346125156696517
VersaBank completes pilot program for tokenized bank deposits on Algorand, Ethereum, and Stellar, positioning Real Bank Tokenized Deposits (RBTDs) as a regulated alternative to stablecoins with potential federal deposit insurance and interest-bearing features. Link: https://x.com/algerstmehn/status/2032143459050570033
Wyoming launches Frontier Stable Token (FRNT), the first U.S. state-issued stable token, on the Hedera network to support faster digital asset payments, with availability on Kraken Exchange, issuance supported by Fireblocks, and cross-chain interoperability via LayerZero. Link: https://x.com/hedera/status/2032132417876566487
JP Morgan Chase faces class action lawsuit for allegedly enabling a $328 million crypto Ponzi scheme through its banking accounts, highlighting concerns over financial institution monitoring and transaction oversight. Link: https://x.com/BullTheoryio/status/2032073434021167406
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