Babylon Labs’ May 25 Temp Check Puts Native BTC Collateral on Aave V4 Vote

On May 25, Babylon Labs submitted a Temperature Check to Aave DAO proposing Trustless Bitcoin Vaults that would let users post native BTC on Aave V4 without bridges, wrappers, or custodians. The plan adds two Ethereum Mainnet Spokes to enable borrowing against BTC and to settle liquidations by swapping seized BTC into WBTC. Babylon Labs says the next steps could include ARFC review and later an onchain AIP vote if the snapshot sentiment is favorable.