Bitcoin no longer needs to be “wrapped” before it can be used as collateral—this may sound far-fetched, but Aave has already given it unanimous approval. On November 9 (UTC+8), the Aave DAO passed the ARFC proposal with 100% approval: enabling native BTC as collateral on Aave V4 through Babylon’s Trustless Bitcoin Vaults. Holders can lock their self-custodied Bitcoin in self-custodial vaults and borrow stablecoins such as USDT and USDC directly—without wrapped tokens, cross-chain bridges, or handing their coins over to a third-party custodian. PANews and Odaily followed up at around 23:41–23:42 that evening. According to Babylon’s official explanation, the collateral parameters are benchmarked against WBTC and cbBTC on Core Spoke, with a collateral factor of around 78% and a risk premium of 0%; no additional markup is applied to borrowing costs.

The proposal must still pass a final AIP before the feature can be enabled on Ethereum mainnet. The official target is around the end of 2026, with a phased, capped rollout. The proposal also includes revenue-sharing and buyback arrangements, but those are governance details. The more immediate takeaway for readers is that, if the launch goes smoothly, the path to “holding real Bitcoin and wanting to borrow stablecoins for liquidity” will involve fewer wrapping steps. Figures and milestones were cross-checked against Babylon’s announcement and Chinese-language news alerts. Parameters may still change before launch, and borrowing carries liquidation risk—don’t mistake the proposal’s approval for a button you can press right away.

#BTC #Aave #DeFi This is not investment advice