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

MeNews · 2026-04-04T05:31:52+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 05:31:52

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ME News update, April 3 (UTC+8). According to a research paper published by the Bank of Canada on April 2, 2026, Aave V3 had an approximately $6 billion lending volume in 2024, a utilization rate of 40%, and a net interest spread of 0.64%, with no bad loans. The study is based on on-chain data from January 1, 2023 to early May 2025 and suggests that overcollateralization and automatic liquidations effectively protect lenders, but at the cost of capital efficiency, with risk borne more by borrowers. Returns are highly concentrated in three asset types—WETH, USDT, and USDC—which together account for nearly 83% of platform revenue. Circular leveraged borrowings make up about 20% of total borrowings; liquidation losses are about 10%–30% of liquidation value, and have limited impact on the broader market. (Source: PANews)

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