Aave avoided bad debt by shifting risk to borrowers: Bank of Canada study
Burns Brief
A Bank of Canada staff paper found Aave V3 avoided bad debt in 2024, but said the model pushed losses onto borrowers during liquidations The news has rattled market participants, with bears looking to push prices lower while bulls attempt to defend key support levels. Watch $ADA $AAVE for reaction — a decisive move above or below key levels will confirm the next trend.
A Bank of Canada staff paper found Aave V3 avoided bad debt in 2024, but said the model pushed losses onto borrowers during liquidations.
Key Takeaways
- A Bank of Canada staff paper found Aave V3 avoided bad debt in 2024, but said the model pushed losses onto borrowers during liquidations