Crypto
Babylon Labs proposes bitcoin-collateral loans for Aave V4
Babylon Labs has detailed a plan to let users of DeFi lending protocol Aave borrow stablecoins using bitcoin as collateral. The governance proposal would add two modules to Aave V4, including a Babylon Spoke that accepts only bitcoin collateral and a BTC Vault Swap Spoke to handle liquidations. The plan would lock bitcoin in a vault on the Bitcoin network and mint an internal token for use only within the lending system.
