Babylon and Aave Team Up for Direct Bitcoin Collateralization

Babylon, a Bitcoin staking project, has partnered with decentralized lending platform Aave to enable direct Bitcoin as collateral for loans. This innovative approach eliminates the need for converting Bitcoin into wrapped tokens or relying on centralized custody solutions. Babylon’s ambitious plans extend beyond lending services, aiming to introduce its vault-based design into DeFi insurance, where Bitcoin will serve as insurance collateral against protocol hacks.