A Bank of Canada staff paper found Aave V3 avoided bad debt in 2024, but said the model pushed losses onto borrowers during liquidations. A Bank of Canada staff paper found that Aave V3 reported zero non-performing loans in 2024, with overcollateralization and automated liquidations helping prevent lender losses in its Ethereum lending market. Using transaction-level data from Jan. 27, 2023, to May 6, 2025, the study found that positions were typically liquidated before collateral values fell below outstanding debt, helping contain lender losses across the sample. But the model came with a tradeoff, the paper said. While it protected lenders from unrecovered losses, it also shifted risk onto borrowers and constrained capital efficiency compared with traditional lending systems. Read more
ARK Invest CEO Cathie Wood said that Bitcoin as a "proven" asset would no longer experience drawdowns of 85% or more from all-time highs. Bitcoin (BTC) is “done” with drawdowns of 85% or more from all-time highs, says ARK Invest CEO, Cathie Wood. Key points: Bitcoin will not see another correction of 85% or more versus its latest all-time high, Cathie Wood argues. Read more
Drift Protocol initiated onchain contact with wallets tied to the $280 million exploit as an unknown sender also attempts to pressure the attacker. Drift Protocol, a Solana-based decentralized exchange (DEX), said Friday it had opened onchain contact with wallets tied to funds stolen in the exploit that outside firms have estimated at roughly $280 million to $286 million. Drift said on X that it had initiated onchain contact with wallets holding the stolen Ether (ETH), seeking to open a line of communication. The team sent onchain messages from its Ethereum address (0x0934faC) to four wallets linked to the exploiter at the time of publication, urging the attacker to reach out via Blockscan chat. “We are ready to speak,” Drift said. Read more
The reported acquisition talks come as South Korea is considering a 20% cap on major crypto exchange shareholders, which would force major platforms to restructure ownership. South Korean brokerage Korea Investment & Securities (KIS) is reviewing a potential stake in crypto exchange Coinone, according to Korean media reports and company comments, though no deal has been finalized. Citing people familiar with the matter, the Korea Herald reported that KIS started engaging with regulators and politicians as part of a broader process tied to a potential investment in Coinone. Coinone also said no specific transaction had been decided. The news comes as South Korea considers a proposal to cap major shareholders’ stakes in domestic crypto exchanges at 20%, a move that could force ownership changes across parts of the sector if enacted. Coinone Chairman Cha Myung-hoon reportedly controls about 53.44% of the exchange, meaning a stake sale could become one way to adapt if the proposed cap advances into law. Read more