# \[ARFC\] Onboard Native BTC as Collateral to Aave V4 via Babylon Trustless Bitcoin Vaults **URL:** \ **Category:** Governance\ **Created:** [October 14, 2026, 2:26pm UTC](https://governance.aave.com/t/arfc-onboard-native-btc-as-collateral-to-aave-v4-via-babylon-trustless-bitcoin-vaults/25845 "2026-10-14T14:26:05Z")\ **Posts on this page:** 1\ **Showing post:** 5
**Author:** ![Foreshock](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/foreshock/32/15555_2.png) [@Foreshock](https://governance.aave.com/u/Foreshock)\ **Post date:** [October 16, 2026, 9:57am UTC](https://governance.aave.com/t/arfc-onboard-native-btc-as-collateral-to-aave-v4-via-babylon-trustless-bitcoin-vaults/25845/5 "2026-10-16T09:57:01Z")
The next step here is risk analysis, so one line in the specification is worth pinning down first: a pause on the TBV contracts stops the exit paths, and those contracts are governed by Babylon governance representatives rather than by Aave DAO. The collateral sits in a vault the depositor controls on Bitcoin, while the path by which it leaves can be closed by a party outside this DAO. The configuration role on the BTC Vault Swap Spoke is named down to the signers, a 2 of 3 of Llama Risk, Babylon Labs and Aave Labs. The TBV governance role is not: it is a public timelock with advance on-chain notice, with no signer set and no delay stated. Babylon’s existing protocol contracts are controlled by a 6 of 9 multisig. So two things I would want in the thread before caps and liquidation parameters are proposed: the signer set and threshold behind the TBV governance role, and the timelock delay that applies to a pause. Both are readable from the deployed contracts once those addresses are posted. --- _[View the full topic](https://governance.aave.com/t/arfc-onboard-native-btc-as-collateral-to-aave-v4-via-babylon-trustless-bitcoin-vaults/25845)._