Use native
Bitcoin as
DeFi collateral
Unlock Bitcoin liquidity without giving up control of your BTC.
Powered by Babylon security
+ Aave liquidity
TBV combines Babylon vault security with Aave borrowing liquidity.
The problem
Most Bitcoin solutions force you into trade-offs, trust a centralised entity or wrap your BTC.
Watch Video
Detailed walkthrough of
the TBV architecture and borrowing flow.
How TBV + Aave v4 works
Deposit native BTC
Lock BTC into a Trustless Bitcoin Vault.
Activate collateral
Collateral state becomes verifiable on
Ethereum.
Borrow liquidity
Access stablecoins through Aave v4.
Repay anytime
Unlock BTC after repayment.
Why TBV
Secured and Verified
Transparent on-chain collateral.
Self-Custodial
Keep control of your BTC.
Native Bitcoin
No wrapped assets or bridges.
Extended FAQ
More info about Native Bitcoin backed borrowing with Aave v4, the public testnet and step by step guides. Please visit: docs.babylonlabs.io
As long as your Vault Provider is responsive, nothing is at risk: the Vault Provider drives the claim and your Bitcoin is redeemed to the address recorded when the vault was created, so the self-claim fallback simply goes unused. These files only matter if the Vault Provider is also unavailable, which is the one case where you would need to claim on your own. The WOTS keypair is a secret that only you hold and cannot be regenerated, so back it up together with your claimer artifacts and your wallet seed phrase at peg-in, and treat losing them as seriously as losing your wallet keys.
They are your safety net for getting your Bitcoin back on your own. Normally your Vault Provider completes the Bitcoin redemption for you, but these artifacts are your personal copy of everything needed to do it yourself if the Vault Provider ever goes offline. They can only be created when your vault is set up, so the app has you download them up front. Keep them safe and you never have to depend on anyone else to redeem your BTC.
A vault is a single Bitcoin UTXO, which makes it indivisible: it can only be redeemed in full, never in part. A position can hold several vaults, so liquidation and withdrawal happen at the granularity of whole vaults, in sums of vaults rather than fractions. Splitting your Bitcoin into two vaults lets a liquidation take only the first vault (the sacrificial vault) while the rest of the position stays intact (the protected vault), and lets you withdraw one vault without touching the other. The lending dashboard suggests this split automatically.
If your position becomes unhealthy, a liquidator repays part or all of your debt and the protocol seizes enough BTC vault collateral to cover it. Because each vault is an indivisible Bitcoin UTXO and cannot be partially seized, the protocol takes whole vaults in the order you set, starting with the first, until the required amount is covered. With one vault, the whole vault is taken. If you split your BTC across vaults, only the vaults needed are seized and the rest stay as active collateral. If a seized vault is worth more than the amount needed, the extra value first goes toward repaying more of your debt, and once all debt is cleared any remaining surplus is paid to you in WBTC.
Yes. No third party can hold your Bitcoin back.The only thing that gates a redemption is the logic of the application where your vault is used as collateral. On Aave v4 that means you can redeem whenever your position stays sufficiently collateralized. Once a redemption starts, the Bitcoin is redeemed to you on Bitcoin after a challange window of roughly two to three days.
No. The protocol introduces no third-party custodian, signer consortium, or threshold-signature group with discretionary control over the underlying BTC.
Access DeFi liquidity with
native Bitcoin
Powered by Babylon vaults and Aave liquidity infrastructure.