Aave avoided bad debt by shifting risk to borrowers: Bank of Canada study

A Bank of Canada staff paper found that Aave V3 r

Aave avoided bad debt by shifting risk to borrowers: Bank of Canada study

Aave avoided bad debt by shifting risk to borrowers: Bank of Canada study

A Bank of Canada staff paper found that Aave V3 reported zero non-performing loans in 2024, with overcollateralization and automated liquidations helping prevent lender losses in its Ethereum lending market.

Daily lending earnings, circulating supply, and borrowing volumes (USD) on Aave V3. Source: Bank of Canada
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