According to Odaily, Aave has initiated a proposal to incorporate Threshold Network's tBTC into its Ethereum-based Aave v3 protocol. As per the information available on Snapshot, tBTC is a digital asset pegged one-to-one with Bitcoin. Through the tBTC bridge, Bitcoin holders can participate in Ethereum's DeFi applications. This move is set to provide Aave users with a unique wrapped Bitcoin, facilitating a fully decentralized and permissionless lending experience.

The next step involves the release of a standard ARFC to gather feedback from the community and service providers, followed by an upgrade of the proposal to the ARFC snapshot stage. If the ARFC snapshot results are positive, an AIP vote will be launched to finally confirm and execute the proposal.