@BabylonLabs_io Trustless Bitcoin Vaults enable native BTC-backed borrowing on Aave V4 by locking Bitcoin directly on its base layer via Taproot scripts.
Unlike WBTC, cbBTC, or CeFi loans—which require custodians, wrappers, or bridges and introduce counterparty risk—TBV keeps BTC under user control with no rehypothecation.
Cryptographic proofs and challenge windows enforce redemptions and liquidations trustlessly. This preserves Bitcoin’s self-custody and security model while unlocking idle capital for DeFi lending.
The approach targets holders unwilling to wrap assets, potentially expanding BTC’s role in credit markets far beyond the current under-1% of supply used in DeFi.
#baby $BABY
Unlike WBTC, cbBTC, or CeFi loans—which require custodians, wrappers, or bridges and introduce counterparty risk—TBV keeps BTC under user control with no rehypothecation.
Cryptographic proofs and challenge windows enforce redemptions and liquidations trustlessly. This preserves Bitcoin’s self-custody and security model while unlocking idle capital for DeFi lending.
The approach targets holders unwilling to wrap assets, potentially expanding BTC’s role in credit markets far beyond the current under-1% of supply used in DeFi.
#baby $BABY