Whoa, $BTC can now be used to borrow on Aave without wrapping? ⛓
Babylon has just submitted an ARFC to the Aave governance forum, proposing to bring native Bitcoin into Aave V4 as collateral through Babylon’s Trustless Bitcoin Vaults (TBV).
Key points:
1️⃣ Add two Aave V4 Spokes—Babylon Spoke and BTCVault Swap Spoke—to handle lending, borrowing, and liquidation settlements
2️⃣ The proposal also involves revenue sharing and a buyback mechanism for $AAVE and $BABY
3️⃣ Risk parameters will be provided by Aave’s risk service providers
If approved and implemented, holders could lock native $BTC on the Bitcoin network and use it directly as collateral to borrow stablecoins and other assets—without wrapping, bridging, third-party custody, or handing their coins over to someone else.
Of course, this still needs Aave governance approval. Bringing native BTC into a leading lending protocol would awaken the largest dormant asset on-chain.
Do you think this proposal will pass? Could it really drive BTCFi? Share your thoughts in the comments 👇
#CPI_BTC_Watch #BTC #ETH
Babylon has just submitted an ARFC to the Aave governance forum, proposing to bring native Bitcoin into Aave V4 as collateral through Babylon’s Trustless Bitcoin Vaults (TBV).
Key points:
1️⃣ Add two Aave V4 Spokes—Babylon Spoke and BTCVault Swap Spoke—to handle lending, borrowing, and liquidation settlements
2️⃣ The proposal also involves revenue sharing and a buyback mechanism for $AAVE and $BABY
3️⃣ Risk parameters will be provided by Aave’s risk service providers
If approved and implemented, holders could lock native $BTC on the Bitcoin network and use it directly as collateral to borrow stablecoins and other assets—without wrapping, bridging, third-party custody, or handing their coins over to someone else.
Of course, this still needs Aave governance approval. Bringing native BTC into a leading lending protocol would awaken the largest dormant asset on-chain.
Do you think this proposal will pass? Could it really drive BTCFi? Share your thoughts in the comments 👇
#CPI_BTC_Watch #BTC #ETH