Why Native Bitcoin Stays Native Throughout the Borrowing Process
I am going to expain here that one of the biggest hurdles for Bitcoin holders entering DeFi has been the need to convert BTC into a wrapped asset or move it across bridges before it can be used. Every additional layer introduces extra assumptions that many long-term Bitcoin holders would rather avoid.
That’s why I found @BabylonLabs_io and Trustless Bitcoin Vaults (TBV) interesting. Instead of asking users to wrap or bridge their Bitcoin TBV is designed to keep BTC on the Bitcoin network while making it usable as collateral. The Bitcoin remains locked in a Taproot-based vault while the protocol uses cryptographic proofs to coordinate with Ethereum. The collateral isn’t transferred to a custodian or represented as a wrapped token.
The first live use case is native Bitcoin-backed borrowing through Aave v4 on the public testnet. Once a vault becomes active users can borrow supported assets such as $USDC $USDT or $WBTC while their native Bitcoin remains secured by the TBV protocol.
For me the most compelling part isn’t just borrowing it’s that Bitcoin keeps its native identity throughout the process. If you’re curious about how trustless Bitcoin-backed borrowing works the public testnet is a great opportunity to explore the complete flow and share feedback with the team.
@BabylonLabs_io $BABY #baby
I am going to expain here that one of the biggest hurdles for Bitcoin holders entering DeFi has been the need to convert BTC into a wrapped asset or move it across bridges before it can be used. Every additional layer introduces extra assumptions that many long-term Bitcoin holders would rather avoid.
That’s why I found @BabylonLabs_io and Trustless Bitcoin Vaults (TBV) interesting. Instead of asking users to wrap or bridge their Bitcoin TBV is designed to keep BTC on the Bitcoin network while making it usable as collateral. The Bitcoin remains locked in a Taproot-based vault while the protocol uses cryptographic proofs to coordinate with Ethereum. The collateral isn’t transferred to a custodian or represented as a wrapped token.
The first live use case is native Bitcoin-backed borrowing through Aave v4 on the public testnet. Once a vault becomes active users can borrow supported assets such as $USDC $USDT or $WBTC while their native Bitcoin remains secured by the TBV protocol.
For me the most compelling part isn’t just borrowing it’s that Bitcoin keeps its native identity throughout the process. If you’re curious about how trustless Bitcoin-backed borrowing works the public testnet is a great opportunity to explore the complete flow and share feedback with the team.
@BabylonLabs_io $BABY #baby