[Direct to AIP] Onboard BTC.b to Aave V3 Core Instance
Author: ACI
Date: 2025-11-04
Summary
This proposal seeks to onboard BTC.b to the Aave V3 deployment on the Core Instance.
As the onboarding of BTC.b has already been approved and executed on the Avalanche Aave V3 instance, this proposal follows the Direct-to-AIP path to extend BTC.b support to the Core instance.
Motivation
BTC.b is a liquid bridged Bitcoin token originally established by Ava Labs and recently transitioned to Lombard’s technical infrastructure, offering users access to native BTC liquidity while maintaining DeFi composability. The migration to Lombard’s architecture preserves token addresses, ensures full continuity for existing integrations and users, and enhances scalability and security. Its integration on Aave V3 Avalanche has proven successful in terms of risk profile and utility.
Given that BTC.b has already passed governance and risk assessments for the Avalanche Instance, and Lombard’s technical infrastructure has also been approved through onboarding of LBTC on the Core Instance, this proposal aims to onboard BTC.b to the V3 Core Instance under the same configuration parameters used for Avalanche, adjusted for market conditions where appropriate.
Specification
The current proposal will be updated once Risk Services Providers provide their analysis.
This proposal is powered by Skywards. ACI is not directly affiliated with Lombard Finance and did not receive compensation for creation of this proposal.
Next Steps
Publication of the proposal (current stage) collect community & service providers feedback.
Publish an AIP vote for final confirmation and enforcement of the proposal.
BTC.b is currently only live on Avalanche, with its Ethereum deployment and broader cross-chain expansion still pending. The asset was acquired by Lombard Finance from Ava Labs in October 2025 and is currently undergoing a migration process that includes testing and security audits. Post-migration, BTC.b will transition from the existing Avalanche Bridge SGX enclave-based key system to Lombard’s security model (previously assessed during the LBTC onboarding), while maintaining the same token address on Avalanche. Because the BTC.b token contract on Avalanche is immutable, a new AssetRouter contract will be introduced to handle withdrawals under the updated design, according to the preliminary technical details shared in Lombard’s blog.
LlamaRisk will provide a comprehensive assessment once full details are available, following the completion of the Avalanche-side migration and the Ethereum token deployment, which are expected to be done in Q4 2025. Optionally, the DAO may consider pausing the BTC.b market on Avalanche during the brief migration window to maintain protocol safety, although Lombard has indicated that existing protocol integrations will remain unaffected.
Disclaimer
This review was independently prepared by LlamaRisk, a DeFi risk service provider funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work.
The information provided should not be construed as legal, financial, tax, or professional advice.