Babylon Proposes Native Bitcoin Lending on Aave V4
Babylon's proposal seeks to enable direct Bitcoin-backed borrowing on Aave V4 without requiring BTC to be wrapped.
Babylon's proposal seeks to enable direct Bitcoin-backed borrowing on Aave V4 without requiring BTC to be wrapped. Bitcoin (BTC) is trading at $80,953.00. This is an original TLT brief synthesising 2 outlets (Cointelegraph, Crypto.news), plus live market data, as of Thu, 15 Oct 2026 12:00:04 UTC.
This development could significantly expand DeFi's utility for Bitcoin holders by allowing them to use their BTC as collateral for loans while maintaining direct ownership, potentially increasing Aave's Total Value Locked (TVL) and liquidity.
- Babylon's proposal aims to enable native Bitcoin lending on Aave V4.
- BTC holders could borrow stablecoins without needing to wrap their coins.
- Aave's TVL is $17.81B, while Babylon's TVL stands at $3.31B.
- The proposal is in early stages and requires further governance votes.
Both Cointelegraph and Crypto.news report that Babylon has proposed enabling native Bitcoin lending on Aave V4, allowing BTC holders to borrow stablecoins without wrapping their coins. They agree that the proposal is in its early stages and requires additional governance votes and security reviews before implementation. However, Cointelegraph emphasizes the governance process more prominently, while Crypto.news focuses on the technical aspect of avoiding the need for wrapped Bitcoin.
Babylon has introduced a proposal to integrate native 
Bitcoin (BTC) lending into 
Aave V4, allowing users to borrow stablecoins using their BTC as collateral without the need for wrapping. This proposal marks a significant step towards expanding DeFi capabilities for Bitcoin holders.
The proposal is currently in the governance process, with multiple stages of voting and security reviews still required before it can be implemented. This process is designed to ensure the security and feasibility of the new feature within the Aave protocol.
Cointelegraph and Crypto.news both confirm that the proposal is in its early stages and requires further governance votes. While Cointelegraph highlights the governance process, Crypto.news emphasizes the technical innovation of avoiding the need for wrapped Bitcoin.
The integration of native Bitcoin lending could potentially increase Aave's Total Value Locked (TVL) by attracting more Bitcoin holders to the platform. Currently, Aave's TVL is $17.81 billion, according to DeFiLlama, while Babylon's TVL is $3.31 billion.
The broader crypto market remains in a state of fluctuation, with the total market cap at $2.78 trillion and Bitcoin's price at $80,897, down 2.87% in the last 24 hours. Aave's native token, AAVE, has also seen a decline of 7.12% in the same period.
Since this brief published about 3 hours ago, Bitcoin (BTC) has moved from $80,897.00 to $80,953.00 — +0.07%.
The chart plots BTC's price: grey is the move before this brief published, the vertical dashed line marks the moment it published, the horizontal dashed line is the price then, and the coloured area is the move since — from TLT's market data (daily resolution). It shows what happened after the news, not that the news caused it; many factors move prices. Not financial advice.
Will Bitcoin dip to $80,000 in October?
Crowd-implied probability on Polymarket, $81.19K 24h volume, resolves Nov 1 — snapshotted when this brief published (Oct 15 11:05 UTC). A market price reflects what traders collectively expect; it is not a forecast by TLT and will have moved since. View the market ↗
At today's peer-to-peer rate, 1 BTC ≈ ₦110.42M (about $80,953.00), down 2.9% over 24 hours. The naira itself trades about 2.4% above the official rate on the P2P market, so a Nigerian buyer's effective cost differs from the headline dollar price.
Live market data
Current prices for the assets in this story — live, source-stamped, updated every 15 minutes.
Figures and sectors in this story, checked live against on-chain aggregators · October 15, 2026.
TLT reads these figures directly from on-chain aggregators (DeFiLlama, mempool.space) at build time — independent of what any outlet reported. Sector totals aggregate every protocol DeFiLlama tracks in that category. Values are live and will change.
Babylon Proposes Native Bitcoin Lending on Aave V4 — questions & answers
What is the current status of Babylon's proposal?
The proposal is in the governance process and requires further votes and security reviews before implementation.
How would native Bitcoin lending on Aave V4 work?
BTC holders could use their coins as collateral to borrow stablecoins without needing to wrap their Bitcoin.
What is the potential impact on Aave's TVL?
The integration of native Bitcoin lending could attract more users and increase Aave's TVL, which currently stands at $17.81 billion.
How much is 1 Bitcoin worth in naira today?
About ₦110.42M at the live peer-to-peer (P2P) USDT rate, which is what Nigerians typically trade at — equivalent to roughly $80,953.00. The naira price moves with both BTC's US-dollar price and the USDT/NGN rate; use our Bitcoin in naira page for any amount.
Has Bitcoin's price moved since this brief was published?
BTC is up 0.07% since this brief first published — trading at $80,953.00 now versus $80,897.00 at publication. TLT re-checks this figure against CoinGecko and Binance every 15 minutes.
Which outlets reported this story?
This is an original TLT brief that synthesises reporting from Cointelegraph, Crypto.news, with the key figures cross-checked for agreement across them. It is not a copy of any one article — follow the source links above for the original reporting.
Original summary — not financial advice. This is an original TLT brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.