TechFlow reports that on May 26, Stani, founder of Aave, announced on X that Babylon has published a proposal on the Aave Governance Forum to integrate the Trustless BTC Vault into Aave v4. The proposal introduces two new Aave v4 Spokes to enable native Bitcoin as collateral within the protocol and invites community feedback—aiming to realize a trustless Bitcoin collateralization model where users can participate in the Aave v4 lending ecosystem without leaving the Bitcoin network.
Previously, the Aave DAO also launched a governance proposal to integrate the Babylon protocol into Aave v4, enabling users to borrow and lend using native Bitcoin as collateral—without relying on wrapped BTC or centralized custodial solutions.
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