According to PANews, Babylon, a Bitcoin staking project, has partnered with decentralized lending protocol Aave to allow users to use native Bitcoin as collateral without wrapping or centralized custody. The collaboration combines Babylon's Trustless Vaults with Aave's hub-and-spoke architecture, creating a Bitcoin-backed 'spoke' within Aave's lending 'hub.' Users will be able to deposit Bitcoin on its base layer and borrow stablecoins and other assets on Aave. The testnet is scheduled to launch in early 2026, with the product expected to go live around April.
Babylon and Aave to Enable Native Bitcoin Mortgages via Trustless Vaults
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