A costly token swap through the Aave interface cost a trader nearly $50 million, prompting the protocol to roll out a new safety feature. Aave Shield, as announced by the team, will automatically block any trade where the price impact exceeds 25%.
Aave Shield: Automatic Block on High-Slippage Trades
The incident occurred when a user attempted to swap $50.4 million USDT for AAVE tokens via CoW Swap. Due to extremely low liquidity, the trader received only about $36,500 worth of AAVE. Aave says the new feature aims to prevent similar outcomes by halting trades with a price impact greater than 25% before execution.
Pepeto Raises $8.1M, Prepares for Exchange Listings
Meanwhile, meme coin project Pepeto is gaining traction among investors looking for the next breakout. The presale has raised over $8.1 million at a token price of $0.000000186. With exchange listings approaching, the team has announced three products: PepetoSwap for token trading within the ecosystem, Pepeto Bridge for cross-chain transfers, and Pepeto Exchange, a full trading platform tailored for the meme coin economy. The smart contract has been audited by SolidProof. Some traders are drawing parallels to early Dogecoin and Shiba Inu, citing the infrastructure and presale momentum.
ETH Rallies to $2,321, Analysts Eye $2,400 and $2,600
Ethereum showed renewed strength on March 17, rising to $2,321 with a single-day gain of 1.89%. Analysts suggest that holding above $2,300 opens the path toward $2,400 and $2,600 as catalysts for further upside. Spot ETH ETFs recorded $35.9 million in inflows on their fifth consecutive positive day, adding fuel to the bullish narrative.
AAVE Slips to $121 Amid Cautious Sentiment
In contrast, Aave slid to $121 on March 17 as the $50 million swap mishap weighed on sentiment. The incident exposed liquidity risks in decentralized markets. Still, some market watchers argue that Aave's core role in DeFi, coupled with ongoing development like Aave Shield, could set the stage for a rebound once confidence returns.