Blockchain and some decentralized finance projects carry smart contracts and software codes, which are usually a double-edged sword. On the one hand, they are secure from fraud and fraud, and on the other hand, they may be harmful in the event of a lack of good knowledge and optimal handling of them.

Recently, the crypto community discovered a false transaction worth 28,050 AAVE coins of the AAVE Decentralized Finance Project valued at approximately $1.1 million.

This error resulted in an irreversible loss due to the wrong recipient address.

Someone just lost $1,134,905 (~3029.40 ETH)! 28.050.04 AAVE lost forever, transferred to the same contract

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– TokenOops (TokenOops) October 19, 2020

According to the site EtherscanThe transfer took place on October 3rd but went unnoticed until yesterday.

The error was discovered by the “TokenOops” account referred to in the above tweet.

TokenOops is a service that tracks ERC20 cryptocurrencies sent to the same ERC20 addresses, which are impossible to obtain and then mint.

For some reason, this user did not take into account that he was sending 28,050 AAVE to the same AAVE smart contract address.

As a result, more than $1 million worth of cryptocurrency has been permanently locked onto the blockchain.

Chase Wright, the firm’s engineer at the Federal Reserve Bank of Chicago, explained:

To make the picture clear here is that the AAVE coins were transferred to the same contract address rather than to another address.

It would be more like sending a letter to the post office address rather than the address you want it to be sent to, with no option and a “return to sender” service.

According to TokenOops, similar false transactions occur frequently, but they are usually small amounts of money and as few as thousands of dollars.

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It is worth noting that these transactions are not always done by mistake, as they may sometimes be according to the will and desire of the user himself, such as sending some bitcoin to Satoshi Nakamoto’s address or to some inactive addresses.

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Since the emergence of decentralized finance, many analysts and observers warn of it, especially in the event that the optimal handling of its contracts is not known.

And the mistake we pointed out in this article may be one of the dangers of DeFi.

The coins may be returned to the unlucky AAVE holder.

A number of members of the AAVE community contributed to a thread in the Project Governance Forum suggesting that a formal proposal for a refund be made to the user concerned.

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