Infrastructure for Native Bitcoin Credit Market

Babylon unlocks capital efficiency for native Bitcoin, trustlessly and in a self-custodial infrastructure. Bitcoin holders can stake Bitcoin and earn staking rewards through our flagship product Trustless Bitcoin Staking protocol, or lock it in a self-custodial vault through our brand-new protocol Trustless Bitcoin Vaults (TBV) as collateral for on-chain credit applications. No wrapping, bridging or centralized intermediaries. The first TBV-integrated application, native Bitcoin-backed borrowing with Aave v4, is on Public Testnet.

0.00 BTC
Total Staked BTC
$32.1
TVL
$110M
Total Raised

Bitcoin Staking

Lock native Bitcoin to help secure proof-of-stake chains. Earn staking rewards while keeping full custody of your Bitcoin. No wrapping, no bridging, no third-party risk.

Trustless Bitcoin Vaults

TBV lets native Bitcoin be used as collateral on any chain and in any application, without wrapping, bridging, or relying on intermediaries.

Trustless Bitcoin Vaults

The problem

Around 3% of Bitcoin is used as collateral, on-chain and off-chain combined. For gold, the figure is around 10%. For ETH, it is around 20%. Bitcoin has limited programmability, so using it as collateral has meant taking on counterparty risk.

The solution

TBV lets native Bitcoin be used as collateral on any chain and in any application, without wrapping, bridging or intermediaries. The Bitcoin stays locked on the Bitcoin network, in a self-custodial BTCVault the holder creates and activates.

The first use-case

Native Bitcoin-backed borrowing is the first use-case, starting with Aave v4 on Ethereum. Bitcoin holders can post native Bitcoin as collateral and borrow stablecoins against it.

Trustless Bitcoin Vaults

The problem

Around 3% of Bitcoin is used as collateral, on-chain and off-chain combined. For gold, the figure is around 10%. For ETH, it is around 20%. Bitcoin has limited programmability, so using it as collateral has meant taking on counterparty risk.

The solution

TBV lets native Bitcoin be used as collateral on any chain and in any application, without wrapping, bridging or intermediaries. The Bitcoin stays locked on the Bitcoin network, in a self-custodial BTCVault the holder creates and activates.

The first use-case

Native Bitcoin-backed borrowing is the first use-case, starting with Aave v4 on Ethereum. Bitcoin holders can post native Bitcoin as collateral and borrow stablecoins against it.

Trustless Bitcoin Vaults

The problem

Around 3% of Bitcoin is used as collateral, on-chain and off-chain combined. For gold, the figure is around 10%. For ETH, it is around 20%. Bitcoin has limited programmability, so using it as collateral has meant taking on counterparty risk.

The solution

TBV lets native Bitcoin be used as collateral on any chain and in any application, without wrapping, bridging or intermediaries. The Bitcoin stays locked on the Bitcoin network, in a self-custodial BTCVault the holder creates and activates.

The first use-case

Native Bitcoin-backed borrowing is the first use-case, starting with Aave v4 on Ethereum. Bitcoin holders can post native Bitcoin as collateral and borrow stablecoins against it.

Access TBV App
Read TBV 101

How Native Bitcoin-backed Borrowing Works

1. Lock

Lock native Bitcoin into a self-custodial BTCVault on the Bitcoin Network.

2. Activate

Aave v4 recognises that Bitcoin as collateral, enabling borrowing of supported assets.
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3. Borrow

Borrow supported assets such as USDC/USDT on Aave v4.
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4a. Repay

The depositor repays the borrowed assets and interest to withdraw or reduce the position.

4b.Liquidation

Liquidation occurs only if the position falls below the liquidation threshold. Partial liquidation is supported.

5. Unlock

After withdrawal is requested, a challenge period verifies the withdrawal. Native Bitcoin is returned to the depositor’s wallet.

1. Lock

Lock native Bitcoin into a self-custodial BTCVault on the Bitcoin Network.

2. Activate

Aave v4 recognises that Bitcoin as collateral, enabling borrowing of supported assets.
‍

3. Borrow

Borrow supported assets such as USDC/USDT on Aave v4.

‍

4a. Repay

The depositor repays the borrowed assets and interest to withdraw or reduce the position.

4b.Liquidation

Liquidation occurs only if the position falls below the liquidation threshold. Partial liquidation is supported.

5. Unlock

After withdrawal is requested, a challenge period verifies the withdrawal. Native Bitcoin is returned to the depositor’s wallet.

Trustless Bitcoin Staking

Bitcoin Staking

Receive rewards by locking Bitcoin in a secure way to help validate other blockchains. No wrapping, no bridging to other networks, and it all happens within your own wallet.

Staking App
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Backed by Leading Investors

Babylon Ecosystem

Partner ecosystem who is building with Babylon to use native Bitcoin in on-chain credit markets.

AAVE LEDGER GOMINING FORDEFI BITGET WALLET BINANCE WEB3 WALLET CRADLE UTILA AEGIS ANCHORAGE DIGITAL BITCOIN SUISSE BITGO CACTUS CUSTODY CEFFU COBO GALAXY DIGITAL HEX TRUST KRAKEN FIGMENT OKX ROCKX
See full ecosystem

Native Bitcoin-backed Borrowing

Public Testnet is live

Babylon is an infrastructure project building Bitcoin collateral solutions.
Our infrastructure has activated more than 100,000 native Bitcoin.
Try our latest product, native Bitcoin-backed borrowing on Aave v4 in the testnet.