Aave V3 vs. Traditional Banks

Source: Bank of Canada Staff Analytical Paper 2026-13
Metric Major Canadian Banks Major US Banks Aave V3
Net Interest Margin 1.69% 2.48% 0.64%
Non-Performing Loans 0.65% 0.59% 0.00% Zero
Loan-to-Deposit Ratio 74.2% 61.2% 40.0%
Operational Overhead High Branches + Staff High Branches + Staff Near Zero Code Only
Operating Hours Business Hours Business Hours 24/7/365
Revenue Concentration Diversified Diversified 83% in 3 tokens
Recursive Leverage Restricted Restricted ~20% of volume
0%
Non-performing loans on Aave V3 in 2024. Lenders never lost principal.
83%
Revenue from just 3 tokens: WETH, USDT, USDC.
80%
Of all liquidated volume came from just the 10 largest waves.