Most Bitcoin is still sitting idle.
Not because people don’t want to use it, but because the usual options come with trade-offs: wrap your BTC, bridge it to another chain, or trust a custodian.
That’s why Trustless Bitcoin Vaults (TBV) from
@BabylonLabs_io caught my attention.
Instead of converting your Bitcoin, TBV lets you lock your native BTC under predefined rules and use it as collateral for borrowing. The first integration is on the Aave v4 testnet, where you can explore native Bitcoin-backed borrowing without giving up what makes Bitcoin… Bitcoin.
What I also like is that you’re still in control. Once your loan is repaid, you can redeem your BTC. And if the market moves against your position, there are built-in rules designed to handle liquidation fairly and transparently.
This feels like a practical step toward making Bitcoin more useful in DeFi without changing its native nature.
If you’re curious, I’d encourage you to try the native Bitcoin-backed borrowing testnet yourself and fill out the feedback form. It’s a great opportunity to experience TBV firsthand and help improve the product before mainnet.
Have you tried it yet? What was your experience?
@BabylonLabs_io $BABY #baby #Bitcoin #DeFi #Aave #Testnet