Bank of Canada report: Aave V3 has zero non-performing loans in 2024.

A paper published by the Bank of Canada on April 2nd shows that Aave V3 had a loan volume of approximately $6 billion in 2024, a utilization rate of 40%, a net interest margin of 0.64%, and no non-performing loans. The study, based on on-chain data from January 1, 2023 to early May 2025, concludes that over-collateralization and automatic liquidation effectively protect lenders, but at the expense of capital efficiency, with borrowers bearing more of the risk. Returns are highly concentrated in three assets: WETH, USDT, and USDC, contributing nearly 83% of the platform's revenue. Revolving leveraged borrowing accounts for approximately 20% of total borrowing, and liquidation losses are approximately 10%-30% of the liquidation value, limiting its impact on the broader market.