I USED TO THINK BORROWING AGAINST BITCOIN WAS MAINLY A CONVENIENCE PROBLEM.
Hold BTC, unlock liquidity, avoid selling. Simple.
But the more I looked at how it works in practice, the less simple it felt. Most routes ask users to wrap BTC, move it through a bridge, or hand some control to a custodian. The borrower may still feel exposed to Bitcoin, but legally and technically, they are often holding something different.
That difference matters when a bridge pauses, a custodian faces trouble, or a regulator asks who actually controls the collateral.
Trustless Bitcoin Vaults (TBV) from @BabylonLabs_io approaches the problem from another direction. The collateral remains native BTC, while borrowing can happen through Aave v4 on Ethereum. On the Public Testnet, users can test borrowing supported assets such as USDC or USDT without first turning Bitcoin into a wrapped token.
For me, the interesting part is not avoiding a sale. It is whether TBV can make liquidity available without creating another fragile ownership layer around Bitcoin.
That will depend on more than smart contracts. Borrowers need predictable fees, clear liquidation rules, understandable repayment flows, and confidence that a mistake does not become impossible to recover from.
Long-term BTC holders and institutions may use this when selling creates tax, treasury, or portfolio problems. It could work if native collateral remains easy to verify. It could fail if the borrowing flow becomes too complex for ordinary users to trust.
Test the Public Testnet and submit honest feedback.
The first time I looked at native Bitcoin-backed borrowing,
I focused on the wrong question: whether it could work technically. The harder question is who carries responsibility when markets move fast, users make mistakes, or settlement paths become unclear.
That is where most Bitcoin-in-DeFi models still feel unfinished. Wrapping and bridging may improve access, but they also introduce custodians, extra contracts, accounting complexity, and legal uncertainty. For retail users, that can mean risks they barely understand. For institutions, it can mean unclear custody treatment. For builders and regulators, it can mean too many parties standing between the original BTC and the final loan.
Trustless Bitcoin Vaults (TBV) from @BabylonLabs_io takes a more direct approach. Native BTC stays on Bitcoin while users can test borrowing supported Ethereum assets such as USDC or USDT through Aave v4. The Public Testnet matters because this design now has to survive real wallets, transaction delays, liquidation logic, recovery procedures, and ordinary human behavior.
The strongest part of TBV is not the borrowing feature alone. It is the attempt to reduce the number of trusted intermediaries without removing accountability from the system.
I think long-term Bitcoin holders, funds, and builders could use this if the process remains understandable, self-custodial, and operationally reliable. It could fail if liquidation handling, compliance treatment, or user recovery becomes harder than the wrapped systems it aims to replace.
Try the testnet, complete the flow, and submit practical feedback.
$EUL is trading near $1.649, but the real question is whether the current strong bullish structure can hold.
On the 1H chart, price is above EMA 30, EMA 100 and EMA 200. RSI 14 is 75.7, and participation is expanding at 1.67x relative volume. Support sits near $0.98727, while resistance is around $1.798.
The market backdrop is SPOT, with roughly $160.6M in reported 24-hour quote volume. Funding is not applicable, while Binance Wallet sentiment is unavailable. The honest uncertainty: The setup remains conditional because a nearby support or resistance break can change the bias. A clean 1H close above $1.798 would strengthen the bullish case. Losing $0.98727 would weaken it.
$PROM is trading near $2.041, but the real question is whether the current strong bullish structure can hold.
On the 1H chart, price is above EMA 30, EMA 100 and EMA 200. RSI 14 is 64.9, and participation is expanding at 2.02x relative volume. Support sits near $1.815, while resistance is around $2.167.
The market backdrop is FUTURES, with roughly $52.2M in reported 24-hour quote volume. Funding is -0.5110%, while Binance Wallet sentiment is unavailable. The honest uncertainty: The setup remains conditional because a nearby support or resistance break can change the bias. A clean 1H close above $2.167 would strengthen the bullish case. Losing $1.815 would weaken it.
The lower and higher timeframes are leaning the same way; volume confirmation is still thin. Risk: A 1h close below 0.3167 invalidates the long structure.
The lower and higher timeframes are leaning the same way; volume confirmation is still thin. Risk: A 1h close below 1.230 invalidates the long structure.
₿ A 11.34% annual decline in $BTC could put Strategy's entire credit structure at risk – and it's not... Strategy has published a financial metric showing that Bitcoin could decline at a constant annual rate of 11.34% across the weighted duration of the company’s credit structure before its modeled coverage falls... Strategy's financial metric suggests that if Bitcoin declines at an annual rate of 11.34%, Strategy's coverage falls below 1.0x, potentially... The financial metric used by Strategy may not accurately reflect the company's true financial situation, or the assumptions made about
The lower and higher timeframes are leaning the same way; volume confirmation is still thin. Risk: A 1h close above 74.08 invalidates the short structure.
The lower and higher timeframes are leaning the same way; volume confirmation is still thin. Risk: A 1h close above 0.06955 invalidates the short structure.
$AKE is trading near $0.00270979, but the real question is whether the current strong bullish structure can hold.
On the 1H chart, price is above EMA 30, EMA 100 and EMA 200. RSI 14 is 53.3, and volume confirmation remains limited at 0.15x relative volume. Support sits near $0.00249161, while resistance is around $0.00273213.
The market backdrop is ALPHA, with roughly $573.9M in reported 24-hour quote volume. Funding is not applicable, while Binance Wallet sentiment is mixed. The honest uncertainty: The setup remains conditional because a nearby support or resistance break can change the bias. A clean 1H close above $0.00273213 would strengthen the bullish case. Losing $0.00249161 would weaken it.
The lower and higher timeframes are leaning the same way; volume confirmation is still thin. Risk: A 1h close above 1.0951 invalidates the short structure.
$ACE is trading near $0.10538, but the real question is whether the current strong bullish structure can hold.
On the 1H chart, price is above EMA 30, EMA 100 and EMA 200. RSI 14 is 67.0, and volume confirmation remains limited at 0.87x relative volume. Support sits near $0.09768, while resistance is around $0.10941.
The market backdrop is FUTURES, with roughly $89.2M in reported 24-hour quote volume. Funding is -0.3642%, while Binance Wallet sentiment is unavailable. The honest uncertainty: The setup remains conditional because a nearby support or resistance break can change the bias. A clean 1H close above $0.10941 would strengthen the bullish case. Losing $0.09768 would weaken it.
The lower and higher timeframes are leaning the same way; volume remains acceptable; positive funding shows crowded longs. Risk: A 1h close above 0.02692 invalidates the short structure.
The lower and higher timeframes are leaning the same way; volume confirmation is still thin. Risk: A 1h close below 0.33004 invalidates the long structure.
$TLM is showing strength where the pullback needed to hold while negative funding keeps squeeze risk alive but price still has to respect the invalidation.
The lower and higher timeframes are leaning the same way; volume confirmation is still thin; negative funding leaves room for a squeeze. Risk: A 1h close below 0.001767 invalidates the long structure.
$WLD is trading near $0.3468, but the real question is whether the current strong bearish structure can hold.
On the 1H chart, price is below EMA 30, EMA 100 and EMA 200. RSI 14 is 26.9, and volume confirmation remains limited at 0.89x relative volume. Support sits near $0.3377, while resistance is around $0.3787.
The market backdrop is FUTURES, with roughly $141.4M in reported 24-hour quote volume. Funding is -0.0535%, while Binance Wallet sentiment is unavailable. The honest uncertainty: The setup remains conditional because a nearby support or resistance break can change the bias. A clean 1H close below $0.3377 would strengthen the bearish case. Reclaiming $0.3787 would weaken it.
📉 $225 million in net outflows on July 23 marks a stark contrast to previous inflow streaks. US spot $BTC ETFs recorded $225 million in net outflows on July 23, ending a seven-session inflow streak as net redemptions from BlackRock’s iShares Bitcoin Trust dominated the reversal. IBIT posted a $202... The reliance on IBIT for a significant portion of the $225 million reversal raises questions about market stability and potential systemic risks. The reversal may be a temporary correction and not indicative of a larger trend, with investors simply rebalancing their portfolios
$BANK is trading near $0.31217, but the real question is whether the current strong bullish structure can hold.
On the 1H chart, price is above EMA 30, EMA 100 and EMA 200. RSI 14 is 65.6, and volume confirmation remains limited at 0.90x relative volume. Support sits near $0.28702, while resistance is around $0.33999.
The market backdrop is FUTURES, with roughly $921.5M in reported 24-hour quote volume. Funding is 0.0050%, while Binance Wallet sentiment is unavailable. The honest uncertainty: Positioning is crowded, so a squeeze can invalidate the clean chart read. A clean 1H close above $0.33999 would strengthen the bullish case. Losing $0.28702 would weaken it.
$HANA is trading near $0.026, but the real question is whether the current strong bearish structure can hold.
On the 1H chart, price is below EMA 30, EMA 100 and EMA 200. RSI 14 is 29.4, and participation is expanding at 6.06x relative volume. Support sits near $0.02486, while resistance is around $0.03302.
The market backdrop is ALPHA, with roughly $19.6M in reported 24-hour quote volume. Funding is not applicable, while Binance Wallet sentiment is mixed. The honest uncertainty: The setup remains conditional because a nearby support or resistance break can change the bias. A clean 1H close below $0.02486 would strengthen the bearish case. Reclaiming $0.03302 would weaken it.
The lower and higher timeframes are leaning the same way; volume confirmation is still thin. Risk: A 1h close above 563.26 invalidates the short structure.
NFA. DYOR.
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