Babylon Submits Aave V4 Temp Check for Trustless BTC Collateral, With Over $4 Billion Staked
Babylon Labs submitted a temp check to Aave DAO to integrate Trustless Bitcoin Vaults with Aave V4, a proposal that would let native BTC be used as collateral without leaving the Bitcoin network. The proposal calls for two new Aave V4 Spokes to onboard native BTC as collateral via the vaults and is seeking community input.
The submission is an early governance step rather than an approved rollout. Its potential scale is notable because Babylon said it already has more than $4 billion in BTC staked that is expected to be used as collateral on Aave if the integration moves forward.
From the sources (2 posts)
@stanikulechovThe first novel Spoke implementation proposal for Aave V4 by the Babylon team introduces trustless BTC collateral on Aave V4 without Bitcoin ever leaving the Bitcoin network. Babylon already has over $4B in BTC staked, which is expected to
@stanikulechovRT @aave: Babylon Labs submitted a Temp Check to Aave DAO to integrate Trustless Bitcoin Vaults with Aave V4. This would allow native BTC…