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 Babylon’s Trustless Bitcoin Vaults technology to lock BTC directly on the Bitcoin blockchain, with loans managed through Aave’s Ethereum-based platform via a special accounting token. The proposal includes two new Aave components for borrowing and liquidations, requires community approval, risk assessments, and security audits before launch. Aave DAO would receive the first $500,000 in annual revenue from the integration, with further revenue sharing tiers proposed. This development follows Babylon’s $15 million funding from a16z and aims to expand Bitcoin lending options while maintaining native BTC custody.
Aave's market cap stands at Rp41.58 trillion as of October 15, 2026, 18:01 WIB, with a 24-hour trading volume of Rp5.39 trillion on Pluang. The token price is Rp2,666,627, down 6.69% over the past day, while Pluang users show a balanced interest with 58% buy and 42% sell activity. This trading environment provides context for Babylon Labs' proposal to integrate native Bitcoin as collateral on Aave V4, potentially impacting Aave's ecosystem and user engagement.
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...
