A few seasons ago, I needed to borrow Stablecoin just to rotate cash flow—honestly, it was a nightmare. Keeping
$BTC in a cold wallet meant it just sat there, generating no cash flow. But if I wrapped it into WBTC or tossed it onto a CeFi exchange, I couldn’t sleep—always terrified of hacks or an exchange going under. Anyone who’s ever been hit by a bridge depeg or had an exchange go bankrupt probably understands this awful feeling of being stuck between “forward” and “backward.”
Last weekend, since I was free, I tested the Public Testnet for
@BabylonLabs_io and connected it to the new Aave v4 to see whether this path really solves the biggest pain point for fellow holders.
Lock 0.15 tBTC into the Trustless Bitcoin Vault (TBV) on L1. On the Aave v4 Spoke side, it receives the collateral and immediately opens a limit of 2,500 USDC with an LTV of 70% and a Health Factor of 1.42. The best part is that the original 0.15 BTC stays safely put on L1—no need for any messy bridge fees, and you absolutely never have to hand over anyone your Private Key.
If you need working capital, you can get it right away. And you can still sleep with peace of mind, because the assets have never left your control.
That said, it does take a bit of time. After finishing a cup of coffee while waiting for 6 L1 block confirmations, it took about 45 minutes. Also, the UI doesn’t show a countdown bar, so it makes you think the order is stuck. The dev added a progress bar to track L1 block confirmation, and the whole experience feels smooth and delightful.
Guys, is an LTV of 70% for Native BTC like this already safe enough for deploying big capital—or should we drop it down to 50% just to be extra sure?
@BabylonLabs_io $BABY #baby #BABY #Aavev4 #BTCFi