Aave V4 becoming the first borrowing integration for Babylon's Trustless Bitcoin Vaults (TBV) sounded like a milestone for native Bitcoin collateral.
Then I found the actual proposal on Aave's governance forum.
It was a Temperature Check, not an approval.
Aave DAO would still retain full control over risk parameters and caps, while details such as oracle assumptions and broader risk analysis were deferred to a later review stage.
That made me wonder whether building trust-minimized collateral is only half the challenge.
The other half may be giving every protocol enough confidence to understand and price its risk.
If even trust-minimized collateral still needs another protocol to define how its risk should be managed, where does "trustless" end and risk management begin?
@BabylonLabs_io #baby $BABY
Then I found the actual proposal on Aave's governance forum.
It was a Temperature Check, not an approval.
Aave DAO would still retain full control over risk parameters and caps, while details such as oracle assumptions and broader risk analysis were deferred to a later review stage.
That made me wonder whether building trust-minimized collateral is only half the challenge.
The other half may be giving every protocol enough confidence to understand and price its risk.
If even trust-minimized collateral still needs another protocol to define how its risk should be managed, where does "trustless" end and risk management begin?
@BabylonLabs_io #baby $BABY