Aave DAO Opens Snapshot Vote on Native Bitcoin Collateral Plan

Aave DAO has opened a Snapshot vote on a plan to let users borrow stablecoins against native Bitcoin (BTC), advancing an Aave V4 proposal that would keep the collateral on Bitcoin’s network.

The vote runs Nov. 6-9 ET. Users would lock BTC in Babylon’s Trustless Bitcoin Vaults and borrow stablecoins through Aave. An Ethereum token would represent each collateral position, while the underlying BTC remains on Bitcoin; the token would be restricted to the lending system.

The vote follows an earlier period of community comment and risk review for Babylon’s native-Bitcoin plan for Aave V4. Risk service provider LlamaRisk recommended an initial cap of 300 BTC and a 78% collateral factor. Neither parameter has been approved.

Even if the Snapshot vote passes, the market would still need a separate onchain governance vote before it could go live.