Babylon Labs has submitted a proposal to Aave's governance forum to allow native Bitcoin to be used as collateral in Aave V4 without wrapping or moving it off the Bitcoin blockchain. The Bitcoin remains in a Taproot UTXO, while a non-transferable ERC-20 representation is created on Ethereum for accounting purposes. The proposal includes a novel liquidation process where liquidators sell seized Bitcoin vaults for WBTC at a discount, with arbitrageurs redeeming the real Bitcoin on-chain. Revenue from this feature would partly benefit the Aave DAO and Babylon Labs, but key risk parameters like loan-to-value ratios and liquidation thresholds are still pending. The proposal is at the ARFC stage and requires community feedback, a Snapshot vote, and an AIP before implementation.
Aave's price on Pluang is Rp2.787.087 as of Oct 16, 2026 02:04 WIB, showing a modest 0.58% increase over the past day. The platform reports a market cap of Rp42,97 trillion and a 24-hour trading volume of Rp5,93 trillion. Despite the recent proposal for native Bitcoin collateral, current Pluang order activity leans heavily toward selling at 69%, with buyers making up 31%.
Babylon Labs submitted a proposal on October 14, 2026, to integrate native Bitcoin as collateral on Aave V4, allowing BTC holders to borrow stablecoins without selling or transferring their coins to other blockchains or custodians. The system uses Ba...
Aave V4 users may soon borrow stablecoins using Bitcoin held natively on the Bitcoin network, thanks to a new proposal by Babylon Labs. Instead of wrapping Bitcoin on Ethereum, users lock BTC in Bitcoin vaults while an Ethereum token represents the l...
Babylon Labs is advancing a plan to enable borrowing on Aave V4 using Bitcoin that remains on the Bitcoin network, avoiding wrapped tokens. Their Trustless Bitcoin Vaults protocol locks BTC in self-custodial Taproot UTXOs, while Aave treats an intern...
At TOKEN2049 Singapore, three DeFi founders shared differing views on their main competitors: Aave's Stani Kulechov sees banks as the biggest rival, aiming to surpass traditional lending with tokenized assets by 2027. Ethena's Guy Young identifies Ci...
On October 13, Aave (AAVE) traded below several important short-term moving averages, including the 7-day, 20-day simple moving averages, and the 12-day and 26-day exponential moving averages, indicating potential short-term weakness. Momentum indica...
