Wu Blockchain has learned that Babylon Labs has proposed deploying two new Spokes on Aave V4: the Babylon Core Lending Spoke and the BTC Vault Swap Spoke. Through the Trustless Bitcoin Vaults (TBV) protocol, native BTC would be introduced as collateral. TBV allows users to lock BTC in Bitcoin Taproot UTXOs, with redemption requiring zero-knowledge proof verification of relevant events on host chains like Ethereum mainnet. Claims without valid proof can be challenged and blocked within the fraud-proof challenge window, enabling participation in DeFi without using wrapped assets, cross-chain bridges, custodians, or multi-signature groups. https://(wublock123.com)/news/aave-v4-native-btc-collateral-babylon-proposal-61638