When I first heard about Babylon, I thought it was another meme coin.🤭
Turns out, it's not.
Babylon (@BabylonLabs_io ) is a Bitcoin infrastructure project that makes it possible to use native Bitcoin as collateral across chains and applications without wrapping, bridging, or trusting intermediaries.
Today, if you want to use your Bitcoin in DeFi, you first have to wrap it and then bridge it to another chain. That adds extra steps and extra risk. Babylon takes a different approach with Trustless Bitcoin Vaults (TBV), which let integrated applications use native BTC as collateral while it remains on the Bitcoin network.
TBV is designed to support products like lending, stablecoins, credit cards, derivatives, insurance, and more.
The first TBV integration is Aave v4. Users can lock native BTC in a Trustless Bitcoin Vault and borrow supported assets on Ethereum without wrapping or bridging their Bitcoin.
If you're curious to see how it works, Babylon has a public testnet where you can try the Aave v4 borrowing flow, explore the user experience, and share your feedback.