The cryptocurrency lending protocol Aave ($AAVE) announced its new move following a March 12 incident in which an anonymous user exchanged $50.4 million worth of aEthUSDT for approximately $36,000 worth of aEthAAVE.
Accordingly, Aave announced that it has launched Aave Shield to protect swap transactions.
According to The Block, Aave ($AAVE) has introduced a protection feature called Aave Shield to prevent high-risk transactions and significant price impacts.
This decision comes after a major swap loss event. When this feature is active, swaps with a price impact of more than 25% are automatically blocked.
To continue with this type of operation, the user must manually disable the Aave Shield security feature.
This event is considered the largest transaction loss of its kind in DeFi history.
*This is not investment advice.