Aave DAO passes proposal to introduce native BTC collateral via Babylon

November 9: Babylon posted on X that Aave DAO passed an ARFC proposal on November 9 with 100% of votes in favor, enabling native Bitcoin as collateral on Aave V4 through Babylon Trustless Bitcoin Vaults (TBV). Bitcoin holders can lock native BTC in a self-custodial manner and borrow assets such as USDT and USDC, without the need for wrapping, cross-chain bridges or third-party custody arrangements. The integration's collateral factor and borrowing rates will be comparable to those of wrapped assets such as WBTC and cbBTC on the Aave V4 Core Spoke, and Aave DAO will share the related revenue with Babylon, with part of it used to buy back AAVE and BABY. The next step is the final AIP stage to activate the integration on Ethereum mainnet.