Native Bitcoin
Backed Borrowing
with Aave v4

Powered by Babylon Trustless Bitcoin Vaults (TBV), borrow against your native Bitcoin without selling, wrapping, bridging or intermediaries.

The Problem

Existing Bitcoin backed borrowing solutions carry trade-offs.

They require borrowers to wrap, bridge their Bitcoin or trust centralized intermediaries.

The Solution

Babylon removes
those trade-offs.

Borrow against your native Bitcoin, without intermediaries.

First Use Case

Native Bitcoin-backed Borrowing

Native BTC

Your Bitcoin on Bitcoin

Babylon TBV

Native Bitcoin is locked in a self-custodial BTCVault

Aave Lending

Native Bitcoin is usable as collateral on Aave v4

Supported Assets

Borrow assets such as USDC / USDT / WBTC

Native Bitcoin is locked in a self-custodial BTCVault and posted as collateral on Aave v4, so you can borrow supported assets.
Bitcoin liquidity reaches Ethereum.

Access TBV App

Native BTC

Your Bitcoin on Bitcoin

Babylon TBV

Native Bitcoin is locked in a self-custodial BTCVault

Aave Lending

Native Bitcoin is usable as collateral on Aave v4

Supported Assets

Borrow assets such as USDC / USDT / WBTC

Try Public Testnet

Compare Bitcoin-Backed Borrowing Solutions

On-chain borrowing

Native BTC / Wrapped BTC
Borrow Rate
0-5%
Redemption
Discretionary 
& Issuer-controlled
Liquidation
On-chain, 
transparent
Design
Off-chain

Centralised borrowing

Native BTC / Wrapped BTC
Borrow Rate
9–16%
Redemption
Discretionary 
& Issuer-controlled
Liquidation
Discretionary

Design
Off-chain
Native BTC
Borrow Rate
3–5%*
Redemption
No trusted
third party
Liquidation
Rule-based,
on-chain
Design
On-chain & Native
* Borrowing rate is variable and changes daily. Fees are variable and may change over time.
Native BTC
3–5%*
Borrow Rate
No trusted

third party
Redemption
Rule-based, 
on-chain
Liquidation
On-chain & Native
Design

On-chain borrowing

Native BTC / Wrapped BTC
0-5%
Borrow Rate
Discretionary 
& Issuer-controlled
Redemption
On-chain, 
transparent
Liquidation
Off-chain
Design
* Borrowing rate is variable and changes daily. Fees are variable and may change over time.
Native BTC
3–5%*
Borrow Rate
No trusted

third party
Redemption
Rule-based, 
on-chain
Liquidation
On-chain & Native
Design

Centralised borrowing

Native BTC / Wrapped BTC
9–16%
Borrow Rate
Discretionary 
& Issuer-controlled
Redemption
Discretionary
Liquidation
On-chain
& Native
Design
* Borrowing rate is variable and changes daily. Fees are variable and may change over time.

How It 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.
‍

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.

How It 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.
‍

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.

How It 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.
‍

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.

How It 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.
‍

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.

How It 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.
‍

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.

How It 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.
‍

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.

What Is Trustless Bitcoin Vaults

TBV lets native Bitcoin be used as collateral on any chain and in any application, without wrapping, bridging, or intermediaries. TBV-integrated applications can use native Bitcoin collateral for lending, stablecoins, credit cards, derivatives, insurance, and other financial products.

The TBV ecosystem

Utila Institutional MPC walletinfrastructure for nativeBitcoin 84 84 Labs 1k BTC committed to DeFistrategies on Upbit's Giwachain Runtime Verification Web3/cryptography securityconsultancy, auditing TBV. Bedrock Bitcoin yield platformbuilding borrowing vaults onTBV. Cradle Options DEX for native Bitcoin collateral Zellic Web3/cryptography securityconsultancy, auditing TBV. ABDK Web3/cryptography securityconsultancy, auditing TBV. Khalani A registered Arbitrageurnetwork for liquidations onTBV. OneKey Self-custodial software andhardware wallet. Aegis Fixed-rate creditinfrastructure backed bynative Bitcoin AltLayer Modular rollup/networkinfrastructure working asUniversal Challenger. Keystone Hardware wallet withair-gapped signing. Ledger Secure hardware wallets withintent based signing GoMining 1k BTC committed to Bitcoinmining-backed yield Aave Native Bitcoin-Backed borrowing with v4
AAVE LEDGER GOMINING CRADLE AEGIS 84 84 LABS

Already building on TBV

TBV is composable, native Bitcoin credit infrastructure. Several projects have already build on top of native Bitcoin-backed borrowing.

Aave: Native Bitcoin-backed borrowing with v4

Aegis: Fixed rate borrowing

GoMining: Bitcoin mining yield products
Bedrock, 84 Labs: DeFi yield products

Integrate TBV in your product

Already building on TBV

Integrate TBV in your product

The same infrastructure extends across financial applications. Integrate TBV to unlock native Bitcoin liquidity inside your existing product.

Stablecoins: Bitcoin-backed stablecoins
Credit card: Bitcoin collateral payment and credit card solutions
RWA: Bitcoin-backed mortgages and auto loans
Insurance: Insurance reserve pools backed by Bitcoin collateral
Options DEX: Bitcoin collateral for derivatives and options market

Extended FAQ

What are the rates?
What are the fees?
How much can I borrow?
How are you not a bridge?
Is your protocol design trustless?

Learn More

If you are interested to learn more about TBV, visit our docs page.

Read Docs

Native Bitcoin-backed Borrowing. 

Public Testnet Is Live.

TBV makes native Bitcoin usable as collateral on any chain and in any application, supporting lending, stablecoins, protection, derivatives, real-world assets and many more use cases.