Key Facts

  • Aave DAO voted unanimously on Nov. 9 to enable native Bitcoin as collateral on Aave V4 through Babylon's Trustless Bitcoin Vaults, Babylon said.

  • Bitcoin holders will be able to lock BTC in self-custodial vaults and borrow USDT, USDC and other supported assets once it is activated, with a 78% collateral factor and no wrapping, Babylon said.

  • Aave DAO will share revenue from the integration with Babylon and fund AAVE and BABY buybacks, and a final AIP stage is still needed to activate it on Ethereum mainnet.

Aave DAO voted unanimously on Nov. 9 to enable native Bitcoin as collateral on Aave V4 through Babylon's Trustless Bitcoin Vaults, Babylon said.

Bitcoin holders will be able to lock BTC in self-custodial vaults and borrow USDT, USDC and other supported assets once it is activated, with a 78% collateral factor and no wrapping, Babylon said.

Aave DAO will share revenue from the integration with Babylon and fund AAVE and BABY buybacks, and a final AIP stage is still needed to activate it on Ethereum mainnet.

The proposal passed on Nov. 9 with 100% of votes in favor. Bitcoin holders will be able to lock their coins in self-custodial vaults and borrow USDT, USDC and other supported assets, without wrapping, bridging or a tri-party agreement, Babylon said.

How It Will Work

The next step is a final Aave Improvement Proposal to activate the integration on Ethereum mainnet.

Revenue Share and Buybacks

Aave DAO will keep the first $500,000 of the integration's revenue in each 12-month period after launch and share revenue above that with Babylon, Babylon said. The tiered split starts at 78% for Aave, 18% for Babylon and 4% for a buyback fund on annual revenue between $500,000 and $2 million, and ends at 61.5%, 31.5% and 7% above $6 million.

AAVE traded at $123.18, down 0.4% over 24 hours and 5.6% over seven days, according to CoinMarketCap data.