I always thought borrowing with Bitcoin was simple.
Then I started reading how @BabylonLabs_io 's Trustless Bitcoin Vaults handle it.
First, your BTC is locked.
The protocol creates CollBTC, which is used to borrow assets like USDC or USDT while your real Bitcoin stays locked.
After that, only two things can happen.
If you repay the loan, CollBTC is burned, the burn is verified, and you get your BTC back.
If you don't repay, a liquidator pays the debt and receives the locked BTC.
What I like is that #Babylon defines every step from the beginning. Whether you repay or get liquidated, the path is already clear.
That's what makes Babylon's Trustless Bitcoin Vaults interesting to me.
@BabylonLabs_io #baby $BABY
Then I started reading how @BabylonLabs_io 's Trustless Bitcoin Vaults handle it.
First, your BTC is locked.
The protocol creates CollBTC, which is used to borrow assets like USDC or USDT while your real Bitcoin stays locked.
After that, only two things can happen.
If you repay the loan, CollBTC is burned, the burn is verified, and you get your BTC back.
If you don't repay, a liquidator pays the debt and receives the locked BTC.
What I like is that #Babylon defines every step from the beginning. Whether you repay or get liquidated, the path is already clear.
That's what makes Babylon's Trustless Bitcoin Vaults interesting to me.
@BabylonLabs_io #baby $BABY