I saw the Babylon-Aave v4 news today, testing starting this quarter, native BTC collateral, no wrapping. Went back to my notes to see how it actually works.
My first assumption was it'd work like the whitepaper's simple example. One borrower, one lender, both pre-sign, no committee. Clean.
That's not quite it once you're plugging into something like Aave.
Aave isn't one lender. It's a pool. There's no single counterparty to co-sign a vault with.
The whitepaper actually covers this, further i...