Circle has added a new borrowing option to Mint: borrow stablecoins using BTC as collateral, now through Aave.

This service builds on the earlier Morpho version. Put simply, the same “borrow against BTC” product now gives you another lending protocol to choose from.

But there’s an easy-to-overlook detail here:

You put up BTC as collateral, but Circle doesn’t necessarily set the lending rules.

The interest rate, collateral ratio, liquidation threshold, and when a position gets liquidated all depend on the lending protocol and its specific parameters.

So when borrowing stablecoins against BTC, what really matters isn’t just how much you can borrow or what the interest rate is.

More importantly:

At what BTC price will liquidation be triggered?

What happens when liquidation occurs?

Who actually sets these rules?

A defining feature of DeFi lending is that many rules are built directly into the protocol, rather than laid out on a platform’s promotional page.

So when you borrow stablecoins against BTC, don’t just look at the borrowing rate.

First, understand the underlying protocol, collateral ratio, and liquidation mechanism.

Because these parameters are what ultimately determine when your position gets liquidated.