I almost scrolled past the governance post until I noticed it wasn't a single ask — it was a Temp Check for two separate Aave v4 Spokes.🔀
We see Everyone talks about Bitcoin-backed borrowing like it's one mechanism.
Turns out Babylon just quietly asked
$AAVE DAO for two.
One handles the actual borrowing against native BTC. The other, the BTC Vault Swap Spoke, exists purely for what happens after a liquidation — settling and converting collateral. Most explainers merge these into one idea. They're not.
Here's why that split actually matters, not just as trivia:
Your BTC isn't wrapped into some
#IOU token sitting on
#Ethereum . It's locked directly on
#bitcoin in a Taproot
#UTXO . To prove things happening on Aave's side (like a repayment) are real, the system uses zero-knowledge proofs instead of asking you to trust a bridge operator. And if a proof looks wrong, there's a fraud-proof challenge window before anything settles — where the depositor themselves is allowed to challenge it.
That last part is the one I didn't expect. Most "trustless" systems make you trust the automation blindly. This one hands you the option to actually contest a claim before it finalizes.
Honestly, my first reaction was skepticism — a challenge window sounds like it just adds delay for the sake of decentralization theater. But the more I sat with it, the two-Spoke split makes sense: borrowing and liquidation-settlement are genuinely different risk problems, and Bitcoin's slower settlement time means you need a real dispute window, not just a UI checkbox that says "trustless."
If this Temp Check passes, this becomes one of the first live examples of native
$BTC collateral getting fraud-proofed on an EVM lending market instead of custodied.
@BabylonLabs_io #baby $BABY Time for most important part,
Which Among these is your Favourite?