#baby $BABY
native BTC lending beats CEX loans" claim vs what actually differs
been sayin all week that @BabylonLabs_io native BTC lending thru Aave v4 is just better than CEX backed loans, n figured id lay out exactly where that claim holds up n where it doesnt before wrappin this series.
the claim: TBV based lending is safer across the board compared to centralized BTC loans. whats actually true: custody risk genuinely goes away, ur btc stays in a self controlled vault instead of sittin in some platforms wallet waitin to get frozen or mismanaged, that part checks out completely. what doesnt hold up as cleanly: liquidation risk doesnt disappear, it just changes shape. CEX platforms liquidate near instantly with little warning, onchain lending still depends on oracle updates n liquidation bots, which can lag durin fast price moves. so ur not eliminatin risk, ur tradin one kind for another.
two things stayed true this whole week writin about TBV. the vault mechanism really is trustless n non custodial, verified that multiple times. n the stuff around it (liquidity, execution timing, ecosystem maturity) still has real gaps that dont get solved by the vault design alone.
so after two weeks lookin at this, hones question, does trustless infrastructure matter more once adoption grows, or does it matter less once ppl just trust it works
@BabylonLabs_io $BABY
native BTC lending beats CEX loans" claim vs what actually differs
been sayin all week that @BabylonLabs_io native BTC lending thru Aave v4 is just better than CEX backed loans, n figured id lay out exactly where that claim holds up n where it doesnt before wrappin this series.
the claim: TBV based lending is safer across the board compared to centralized BTC loans. whats actually true: custody risk genuinely goes away, ur btc stays in a self controlled vault instead of sittin in some platforms wallet waitin to get frozen or mismanaged, that part checks out completely. what doesnt hold up as cleanly: liquidation risk doesnt disappear, it just changes shape. CEX platforms liquidate near instantly with little warning, onchain lending still depends on oracle updates n liquidation bots, which can lag durin fast price moves. so ur not eliminatin risk, ur tradin one kind for another.
two things stayed true this whole week writin about TBV. the vault mechanism really is trustless n non custodial, verified that multiple times. n the stuff around it (liquidity, execution timing, ecosystem maturity) still has real gaps that dont get solved by the vault design alone.
so after two weeks lookin at this, hones question, does trustless infrastructure matter more once adoption grows, or does it matter less once ppl just trust it works
@BabylonLabs_io $BABY