AaveBabylon Labs proposes native Bitcoin collateral on Aave V4
Babylon Labs has published an ARFC on the Aave governance forum proposing to onboard native Bitcoin as collateral on Aave V4 through its Trustless Bitcoin Vaults (TBV) protocol. Aave announced the proposal on X and linked the forum thread, welcoming it as a way for users to lock native BTC on the Bitcoin chain and borrow supported assets against it — no bridges, wrappers, or custodians, with Bitcoin never leaving the Bitcoin network.
- The integration would deploy two new Aave V4 Spokes, including a Babylon Spoke
- Babylon argues the design removes wrapped-asset custodial risk and opens up BTC's roughly $1 trillion+ market capitalization to Aave's lending markets
- Proposal is in community discussion phase, following Aave's recent string of ARFCs expanding V4 markets and collateral types
Sources
- Find the proposal here: https://t.co/XVWrU3zBGq Replying to their earlier post: A new proposal to onboard native BTC as collateral on Aave V4 through @babylonlabs_io Trustless Bitcoin Vaults is live. If approved, users can lock their native BTC on the Bitcoin chain, and borrow s…x.com ↗
- A new proposal to onboard native BTC as collateral on Aave V4 through @babylonlabs_io Trustless Bitcoin Vaults is live. If approved, users can lock their native BTC on the Bitcoin chain, and borrow supported assets against it. https://t.co/Nfe7uhbBSrx.com ↗
- Find the proposal here: https://t.co/XVWrU3zBGq Replying to their earlier post: A new proposal to onboard native BTC as collateral on Aave V4 through @babylonlabs_io Trustless Bitcoin Vaults is live. If approved, users can lock their native BTC on the Bitcoin chain, and use it a…x.com ↗
- A new proposal to onboard native BTC as collateral on Aave V4 through @babylonlabs_io Trustless Bitcoin Vaults is live. If approved, users can lock their native BTC on the Bitcoin chain, and use it as collateral to borrow supported assets on Aave V4. https://t.co/ZFXZo3Qr3Jx.com ↗
- RT @babylonlabs_io: Today, we published an ARFC on the @aave governance forum to propose native Bitcoin to Aave V4 as collateral through Ba…x.com ↗
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