Aave DAO has unanimously passed an ARFC to enable native bitcoin as collateral on Aave V4 through Babylon Trustless Bitcoin Vaults, without wrapping or bridging.
The proposal sets a 78% collateral factor and 0% risk premium, with revenue sharing between Aave DAO and Babylon and a portion earmarked for AAVE and BABY buybacks. If the final AIP passes, it could broaden bitcoin-backed DeFi activity while making the vault design and risk controls key to watch. Is the proposed collateral framework sufficient for mainnet launch?
$aave $baby
Not financial advice.
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The proposal sets a 78% collateral factor and 0% risk premium, with revenue sharing between Aave DAO and Babylon and a portion earmarked for AAVE and BABY buybacks. If the final AIP passes, it could broaden bitcoin-backed DeFi activity while making the vault design and risk controls key to watch. Is the proposed collateral framework sufficient for mainnet launch?
$aave $baby
Not financial advice.
Follow for more crypto news and market updates.