The first thing I expected to find in Babylon's Trustless Bitcoin Vaults (TBV) documentation... wasn't a vault at all.
I assumed a vault meant what it usually means in DeFi:
A shared pool.
Many depositors.
One contract.
TBV defines it differently.
Every vault is a single Bitcoin UTXO.
The protocol can't move it.
Can't lend it.
Can't repurpose it.
It only follows the rules written into that vault.
That's when the word "vault" started to mean something different to me.
The BTC never stops being your BTC.
Only the rules around it change.
If that model proves itself on Aave v4...
how many Bitcoin DeFi vaults are actually vaults and how many are simply pooled custody with a different label?
@BabylonLabs_io #baby $BABY
I assumed a vault meant what it usually means in DeFi:
A shared pool.
Many depositors.
One contract.
TBV defines it differently.
Every vault is a single Bitcoin UTXO.
The protocol can't move it.
Can't lend it.
Can't repurpose it.
It only follows the rules written into that vault.
That's when the word "vault" started to mean something different to me.
The BTC never stops being your BTC.
Only the rules around it change.
If that model proves itself on Aave v4...
how many Bitcoin DeFi vaults are actually vaults and how many are simply pooled custody with a different label?
@BabylonLabs_io #baby $BABY