Aave DAO unanimously approved native Bitcoin collateral on Aave V4 through Babylon vaults on November 9, 2026.
On November 9, 2026, Aave DAO passed an ARFC with 100% of votes in favor to enable native $BTC as collateral on Aave V4 via Babylon Trustless Bitcoin Vaults. Holders can lock bitcoin self-custodially in a BTCVault, keep title, and borrow USDT, USDC, and other supported assets—no wrapping, bridging, or tri-party custody. Proposed terms include a 78% collateral factor and a 0% risk premium, aiming for parity with wrapped BTC markets on the Core Spoke.
Liquidity starts from the Core Hub with about $21M in credit lines across USDT, USDC, GHO, USDG, RLUSD, and WBTC. After mainnet, Aave DAO retains the first $500K of annual integration revenue before sharing with Babylon, with a slice earmarked for $AAVE and BABY buybacks. Next is a final AIP, then a staged, restricted Ethereum mainnet launch targeted for late 2026 (subject to change).
#Bitcoin #Aave #DeFi
DYOR. Not financial advice.
On November 9, 2026, Aave DAO passed an ARFC with 100% of votes in favor to enable native $BTC as collateral on Aave V4 via Babylon Trustless Bitcoin Vaults. Holders can lock bitcoin self-custodially in a BTCVault, keep title, and borrow USDT, USDC, and other supported assets—no wrapping, bridging, or tri-party custody. Proposed terms include a 78% collateral factor and a 0% risk premium, aiming for parity with wrapped BTC markets on the Core Spoke.
Liquidity starts from the Core Hub with about $21M in credit lines across USDT, USDC, GHO, USDG, RLUSD, and WBTC. After mainnet, Aave DAO retains the first $500K of annual integration revenue before sharing with Babylon, with a slice earmarked for $AAVE and BABY buybacks. Next is a final AIP, then a staged, restricted Ethereum mainnet launch targeted for late 2026 (subject to change).
#Bitcoin #Aave #DeFi
DYOR. Not financial advice.
