slippage

According to RHEA Finance's official disclosure, the NEAR ecosystem lending protocol RHEA Finance (formerly known as Burrow Finance) experienced a margin trading feature hack, resulting in a loss of approximately $18.4 million.The attacker began laying the groundwork several days prior by creating multiple fake token pools on Ref Finance and injecting liquidity, constructing a malicious exchange route that exploited a vulnerability in the protocol's slippage protection mechanism—this mechanism did not account for the scenario where intermediate tokens were reused when calculating the minimum output of multi-step exchanges—leading to the borrowed debt tokens being directed into fake token pools controlled by the attacker, triggering a large-scale forced liquidation that ultimately drained the protocol's reserve pool. During the attack, the attacker deleted a total of 55 intermediate accounts to cover their tracks. Currently, the attacker has returned approximately 3.359 million USDC and 1.564 million NEAR to the RHEA lending contract, while another 4.34 million USDT has been frozen (of which Tether froze 3.291 million and NEAR Intents froze 1.053 million). The protocol contract has been suspended, and the team is collaborating with centralized exchanges for joint tracking and has notified relevant law enforcement agencies.

Aave released an analysis of the Swap event: a user executed a token exchange operation through the CoW Swap router integrated into the Aave interface. The user attempted to exchange 50,432,688 aEthUSDT (worth approximately $5,043,270) for aEthAAVE. Due to the user's order being exceptionally large in a market with insufficient liquidity, the quotes from CoW Swap were extremely poor, and the user confirmed acceptance of the quote.It should be noted that the Aave protocol itself was never at risk, as this exchange occurred outside the protocol, through the aforementioned third-party Swap protocol. Currently, the relevant user has not contacted the Aave team. The key issue in this event was insufficient market liquidity, rather than slippage.Insufficient liquidity refers to the inability of the market to provide enough assets at a specific price to meet large orders, resulting in severe price deviations. The user's order was far larger than the available market liquidity, and the CoW Swap quote was 99.9% lower than the expected market clearing price; the adverse outcome stemmed from the user's confirmation of the quote, rather than price changes during execution.The root cause of this event was the routing of large trades in a market with insufficient liquidity, leading to extreme price shocks. The user executed the trade after confirming a clear warning on the interface. To prevent similar events, Aave Shield will be introduced in the Swap widget: it will default to blocking exchanges with price shocks exceeding 25%, and users will need to manually disable this feature to execute high-risk trades. The transaction incurred approximately $110,368 in fees, which will be refunded after user verification.

Ethereum block builder Titan Builder earned $34.5 million in the past 24 hours, surpassing Tether ($16.43 million) to take the top spot.Earlier reports indicated that a user, while exchanging approximately $50.43 million aEthUSDT for AAVE via CoWSwap, ended up receiving only about 327 aEthAAVE, worth approximately $36,000, due to slippage exceeding 99%. Titan Builder made a profit of about $34 million.

The on-chain analysis platform Lookonchain stated in a social media post that the party responsible for a $50 million loss due to slippage may be Garrett Jin, the operator of the "1011 insider address."On-chain tracking shows that 13 wallet addresses associated with him withdrew USDC or USDT from Binance on February 16 and February 20, and have recently become active again, transferring funds to two new wallets. One of the wallets shares the same Binance deposit address as Garrett Jin.Lookonchain noted that Garrett Jin previously sold 261,024 ETH (approximately $543 million) and 11,318 BTC (approximately $761 million) on February 15 and February 20, respectively, and the withdrawal times from Binance for the aforementioned wallets are close to these transactions.

On-chain data analyst Yu Jin stated that earlier today, the "whale/institution that bought AAVE and suffered a slippage loss of over 50 million USD" still holds 302 million USDC in another wallet.

Binance founder CZ commented on "a user buying AAVE and suffering a slippage loss of over 50 million dollars" by saying: "It's very unfortunate; liquidity is the best user protection."

CoW DAO responded to the incident where "a certain whale lost approximately 50.39 million dollars due to excessive slippage when exchanging aEthAAVE," stating that "no DEX, DEX aggregator, public liquidity pool, or private liquidity pool (or their combination) can execute this transaction at a price close to a reasonable level. However, preventing users from trading would deprive them of their choices and could lead to extremely poor outcomes in certain situations (such as market crashes).Such transactions indicate that the DeFi user experience has not yet reached the level necessary to protect all users. The team is currently exploring how to balance strong security measures with maintaining user autonomy. We will also refund any fees paid to CoW DAO due to this transaction."According to previous news from ChainCatcher, a user lost approximately 50 million dollars in a single transaction due to slippage, and the founder of Aave stated that the interface had issued multiple warnings.

A crypto user lost approximately $50 million in a token swap transaction on Thursday. On-chain data shows that the user exchanged about $50.43 million worth of aEthUSDT for aEthAAVE through the CoW Protocol, but due to insufficient liquidity pool depth, the transaction experienced a slippage of over 99%, ultimately resulting in the user receiving only about 327 aEthAAVE, worth approximately $36,000, with the difference being captured by arbitrage traders and network intermediaries.Aave founder Stani Kulechov posted on the X platform that the user purchased AAVE using $50 million USDT through the Aave interface. Due to the unusually large size of the single order, the interface issued an extreme slippage warning to the user and required confirmation. After accepting the warning on a mobile device, the user proceeded with the transaction.Kulechov stated that the CoW Swap router operated as expected and followed industry-standard operating procedures, but the outcome was clearly not ideal. Kulechov mentioned that Aave plans to contact the user and refund approximately $600,000 in fees charged from the transaction. Days before this incident, about $27 million in positions on Aave were liquidated, and some market participants believe that this liquidation may be related to a temporary pricing issue with wstETH.

Ondo Finance officially stated on the X platform that the liquidity source for its stock tokenization platform comes from the stock market, primarily from NASDAQ and the New York Stock Exchange, rather than AMM pools, which means there is almost no slippage during large-scale trades.Each stock token is fully backed by custodial shares, using a model similar to stablecoin reserves.

ChainCatcher message, according to crypto analyst Ai Yi @ai_9684 xtpa monitoring, a large holder purchased 5,073.16 ETH on-chain at a price of about $3,958 each on July 28, with a total transaction amount of approximately $20.08 million. The purchase price was about $37 higher than the exchange quotes at the same time, almost at a short-term peak.Currently, the address has an unrealized loss of about $1.645 million, and no selling or transferring actions have been detected.

ChainCatcher message, Bedrock posted on platform X: "Recently, the price of BR on decentralized trading platforms has experienced significant fluctuations. In response, we have proactively disclosed the project wallet address to enhance transparency and facilitate real-time monitoring of fund flows by the community.To further support users trading in the PancakeSwap BR/USDT trading pool, we will launch the following plan: a special airdrop program for PancakeSwap BR/USDT trading users. During periods of significant price volatility, if users experience a noticeable price difference due to market fluctuations or slippage, they will be eligible for special airdrop compensation. The specific rules and distribution plan for the airdrop will be announced and completed in the coming days."

ChainCatcher message, according to on-chain analyst Ai Yi (@ai 9684xtpa) monitoring, a certain whale made a high slippage purchase of WBTC, buying 49.16 WBTC for 5.22 million USDT, with an average price of 106,265 dollars. Currently, there is an unrealized loss of 53,000 dollars.

ChainCatcher news, according to analysis by X platform user @litangsongyx, today "a single transaction of KOGE/USDT was squeezed by $47,000" due to the user setting a nearly 50% slippage and not enabling MEV protection.The user had a single transaction volume of $210,000 and ultimately received KOGE worth $161,000, resulting in a loss of $47,000. Due to the user's large transaction volume, the routing split the transaction into three liquidity pools: $120,000 transaction volume used the Uniswap V4 liquidity pool; $43,000 transaction volume used the Uniswap V3 liquidity pool; $47,000 transaction volume used the PancakeSwap liquidity pool.When the transaction went through the PancakeSwap liquidity pool, an MEV bot used a $320,000 transaction to push KOGE to an extremely high level, causing the user to complete the transaction at a very high price. After the MEV attack, the user has added KOGE tokens to the ZKJ-KOGE liquidity pool to earn fees.

ChainCatcher message, Bitget has made multiple optimizations to its Onchain trading product to comprehensively enhance the user trading experience. Update the Bitget App to the latest version to experience these improvements. This upgrade mainly includes:Flexible adjustment of gas slippage: Supports multiple modes to improve trading efficiencyNew sharing function: Allows users to share their positions and trading situationsUpgraded search function: Now supports searching by contract address, improving asset location efficiencyNew market K-line view with market capitalization: Dual switching between price and market cap to help gain insights into market changesLaunch of the lightning sell function: Quickly execute trading operations

ChainCatcher news, asset trading platform BitMart has launched the "Slippage Protection Plan" to help users cope with trading risks caused by market fluctuations. The event lasts until May 20, and users participating in U-based contract trading can apply for compensation if slippage ≥0.05% occurs due to platform technical or liquidity issues. USDT compensation can reach the account in as fast as 1 hour. New users can also enjoy a 200% refund on abnormal slippage differences in the first month of registration, with a maximum of 1000 USDT.It is reported that BitMart has recently launched three major plans around its global user growth strategy: the Slippage Protection Plan helps traders avoid slippage troubles and confidently execute strategies; the Ace Trader Program offers up to 50% industry-leading profit-sharing for copy trading, helping traders expand their earnings and influence; the Global Community Partner Program supports users in monetizing their influence, enjoying up to 70% in rebate earnings. BitMart is reshaping the trading ecosystem through technology-driven innovation, creating a safer and more efficient trading environment and potential earnings for users.

ChainCatcher news, Jupiter co-founder Meow posted on the X platform that Jupiter is currently undergoing its third iteration of smart slippage, called RTSE (real time slippage estimator), which supports providing slippage-related signal information, including real-time price data, failure/success rates, etc., to help traders determine the best and safest slippage.