Aave’s proposal to accept native BTC as collateral has passed an ARFC vote, but users still can’t officially borrow against it. Don’t mistake governance approval for a product launch.
Babylon announced that the vote on November 9 received 100% support. The proposal would let users lock BTC in a vault on the Bitcoin network and borrow assets such as USDC and USDT through Aave V4, without first converting their BTC collateral into a liquid wrapped token.
Keeping BTC on its native chain doesn’t mean it can be withdrawn at any time. The governance documents state that redemptions are subject to a challenge period and settlement takes several days; borrowed positions may still be liquidated.
Final on-chain governance approval of the AIP is still required before deployment. For holders, the official launch date, borrowing rates, and exit terms matter more to practical use than 100% support.
Risk warning: Borrowing against collateral involves liquidation, smart contract, and network risks.
Binance Wallet referral code: MOLLY666
Babylon announced that the vote on November 9 received 100% support. The proposal would let users lock BTC in a vault on the Bitcoin network and borrow assets such as USDC and USDT through Aave V4, without first converting their BTC collateral into a liquid wrapped token.
Keeping BTC on its native chain doesn’t mean it can be withdrawn at any time. The governance documents state that redemptions are subject to a challenge period and settlement takes several days; borrowed positions may still be liquidated.
Final on-chain governance approval of the AIP is still required before deployment. For holders, the official launch date, borrowing rates, and exit terms matter more to practical use than 100% support.
Risk warning: Borrowing against collateral involves liquidation, smart contract, and network risks.
Binance Wallet referral code: MOLLY666
