The real question isn’t whether BTC can be used as collateral, but whether liquidation will flip over the entire UTXO set. In Babylon’s TBV, the debt may only cover about 30% of the collateral value, yet on-chain you still must spend the entire output, with the remaining value returning through a somewhat rough pathway—meaning users bear friction beyond what they imagine. In Babylon Labs’ testnet, what’s truly worth breaking down is precisely this kind of partial-liquidation refund design. $BABY When I look at a product like this, I only care about three things: the native UTXO, on-chain partial liquidation, and how the redemption conditions are defined. Only after these questions are answered clearly can the risks be properly determined. #baby