Aave rolls out Shield after $50.4M swap triggers 99.9% price impact on March 12

On 12 March, a $50.4 million swap routed from CoW Swap into a shallow SushiSwap AAVE/WETH pool linked to Aave caused a 99.9% price impact and exposed severe liquidity weakness. In response, Aave launched Aave Shield, a swap-level safety feature that blocks trades with more than 25% price impact unless users manually disable it, as the protocol seeks to balance permissionless access with stronger execution safeguards.