The Bank of Canada study also found that a significant portion of activity on Aave V3 was driven by recursive leverage — a strategy where users repeatedly borrow against collateral to increase exposure. This accounted for over 20% of total borrowed volume during the analyzed period.

Liquidations were concentrated in major assets such as wrapped Ether and Bitcoin derivatives, often occurring in waves during market downturns. These patterns show how leveraged strategies can amplify both borrowing activity and risk within decentralized lending platforms.