Bank of Canada Report: Aave V3 Achieves Zero Bad Debt in 2024

MeNews · 2026-04-04T05:07:07+00:00

A research report from the Bank of Canada shows that Aave V3 is expected to reach a loan volume of $6 billion in 2024, with a utilization rate of 40%, and no bad loans have occurred. The study indicates that over-collateralization protects lenders but reduces capital efficiency. Borrowers face more risks, and platform revenue mainly comes from WETH, USDT, and USDC.

MeNews

2026-04-04 05:07:07

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ME News update. On April 3 (UTC+8), according to a research report paper published by the Bank of Canada on April 2, 2026, Aave V3 in 2024 had a loan volume of about $6 billion, a utilization rate of 40%, a net interest spread of 0.64%, and it saw no bad loans. The research is based on on-chain data from January 1, 2023 to early May 2025, and it holds that over-collateralization and automatic liquidation effectively protect lenders, but at the expense of capital efficiency, with more of the risk borne by borrowers. Returns are highly concentrated in three asset types—WETH, USDT, and USDC—together contributing nearly 83% of platform revenue. Looping leverage borrowing makes up about 20% of total borrowing, liquidation losses are about 10%-30% of the liquidation value, and their impact on the broader market is limited. (Source: PANews)

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