AAVE DAO APPROVES PROPOSAL TO INTEGRATE NATIVE BITCOIN COLLATERAL ON AAVE V4 VIA BABYLON
The Aave DAO has formally approved an ARFC governance proposal with unanimous 100% voting consensus on November 9, endorsing the integration of native Bitcoin as an eligible collateral asset for Aave V4 through Babylon's non-custodial Bitcoin Vault architecture.
Under the technical specifications, Bitcoin holders will be able to lock native BTC directly inside self-custodial vault contracts to borrow major stablecoins, including USDT and USDC, without utilizing wrapped representation tokens or third-party cross-chain bridges. The proposed collateral framework sets a Loan-to-Value (LTV) ratio at 78% alongside a 0% risk premium. Primary liquidity will be sourced via the Aave Core Hub, launching with an initial stablecoin credit ceiling of approximately 21 million USD, which will be scaled programmatically across successive phases.
Financially, Aave DAO will retain the first 500,000 USD in protocol revenue generated over each rolling 12-month window. For revenue generated between 500,000 and 2 million USD, proceeds are split 78% to Aave, 18% to Babylon, and 4% to a dedicated token buyback module; for revenues exceeding 6 million USD, allocations adjust to 61.5%, 31.5%, and 7%, respectively. The designated buyback treasury will direct 85% of capital toward purchasing AAVE tokens and 15% toward BABY tokens. The initiative now transitions to the formal AIP phase ahead of a planned mainnet release in late 2026.
DYOR. $AAVE #Colecolen
The Aave DAO has formally approved an ARFC governance proposal with unanimous 100% voting consensus on November 9, endorsing the integration of native Bitcoin as an eligible collateral asset for Aave V4 through Babylon's non-custodial Bitcoin Vault architecture.
Under the technical specifications, Bitcoin holders will be able to lock native BTC directly inside self-custodial vault contracts to borrow major stablecoins, including USDT and USDC, without utilizing wrapped representation tokens or third-party cross-chain bridges. The proposed collateral framework sets a Loan-to-Value (LTV) ratio at 78% alongside a 0% risk premium. Primary liquidity will be sourced via the Aave Core Hub, launching with an initial stablecoin credit ceiling of approximately 21 million USD, which will be scaled programmatically across successive phases.
Financially, Aave DAO will retain the first 500,000 USD in protocol revenue generated over each rolling 12-month window. For revenue generated between 500,000 and 2 million USD, proceeds are split 78% to Aave, 18% to Babylon, and 4% to a dedicated token buyback module; for revenues exceeding 6 million USD, allocations adjust to 61.5%, 31.5%, and 7%, respectively. The designated buyback treasury will direct 85% of capital toward purchasing AAVE tokens and 15% toward BABY tokens. The initiative now transitions to the formal AIP phase ahead of a planned mainnet release in late 2026.
DYOR. $AAVE #Colecolen
