# \[TEMP CHECK\] Babylon Trustless BTC Vault Integration on Aave V4 **URL:** \ **Category:** General\ **Created:** [May 25, 2026, 2:44pm UTC](https://governance.aave.com/t/temp-check-babylon-trustless-btc-vault-integration-on-aave-v4/24964 "2026-05-25T14:44:48Z")\ **Posts on this page:** 1\ **Showing post:** 2
**Author:** ![simo](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/simo/32/13316_2.png) [@simo](https://governance.aave.com/u/simo)\ **Post date:** [May 25, 2026, 4:15pm UTC](https://governance.aave.com/t/temp-check-babylon-trustless-btc-vault-integration-on-aave-v4/24964/2 "2026-05-25T16:15:50Z")
Writing this as someone who comes from the Bitcoin world. For years the standard answer for “BTC in DeFi” has been only one: wrap it. WBTC works, but ~115k BTC sitting behind a custodial wrapper has always been the awkward compromise the ecosystem learned to live with. Especially for the bitcoiners. This could represent the first at-scale deployment of native BTC as productive collateral without that compromise. Babylon’s staking protocol already shows there’s real demand for the trustless model. ~52k BTC ($4B) staked natively, almost half of the entire WBTC supply, with BTC never leaving Bitcoin. Extending that same self-custodial approach from staking to lending is the logical next step, and Aave V4’s Hub and Spoke Design is the perfect match. The WBTC angle is also worth highlighting: Aave is the largest BTC reserve in DeFi (~$2.5B WBTC supplied, historically underutilized on the borrow side). Routing post-liquidation settlement through WBTC turns this integration into actual borrow demand for an asset already used in size within Aave Protocol. Supportive at Temp Check. --- _[View the full topic](https://governance.aave.com/t/temp-check-babylon-trustless-btc-vault-integration-on-aave-v4/24964)._