Babylon proposes integrating native BTC collateral into Aave v4

Babylon Labs has submitted a "Temp Check" proposal to the Aave governance forum to integrate native BTC as a collateral asset in Aave v4. The proposal centers on using "trust-minimized" BTC vaults, which would allow BTC to be used directly as collateral without the need for wrapped assets. Babylon stated that it expects this integration to expand Bitcoin's liquidity into the DeFi ecosystem.