🚀 Aave V3 Achieves Zero Bad Loans in 2024, Bank of Canada Reports
#Aave #DeFi #BankOfCanada #Crypto #Finance #Blockchain #Lending #OverCollateralization #Liquidation #RecursiveLeverage #AAVE
A Bank of Canada working paper has highlighted that Aave V3, a decentralized finance platform, recorded zero bad loans in 2024. According to NS3.AI, this achievement was attributed to the platform's use of over-collateralization and automatic liquidations, which effectively protected lenders by transferring potential losses to borrowers. The paper also noted that recursive leverage constituted over 20% of the total borrowing volume on the platform.#Aave #DeFi #BankOfCanada #Crypto #Finance #Blockchain #Lending #OverCollateralization #Liquidation #RecursiveLeverage #AAVE