Aave introduces 'Aave Shield' to protect swap transactions

Cryptocurrency lending protocol Aave (AAVE) is introducing a protection feature called Aave Shield to block high-risk swaps that have a significant price impact, Cointelegraph reported. The move follows a major swap loss incident. When the feature is active, any swap that would execute at a price more than 25% worse than expected will be automatically blocked. To proceed with such a transaction, a user must manually disable the function. This development comes after an anonymous trader swapped 50 million USDT for approximately 325 AAVE, worth about $36,000, on Aave's Cow Swap.