Aave’s proposal to let users borrow stablecoins against native Bitcoin received unanimous support in the preliminary ARFC governance vote on November 9, according to Babylon Labs. Final on-chain approval is still required before the market can launch on mainnet. The proposed market includes $8 million credit lines for each of USDT and USDC, $1 million for GHO and $2 million each for USDG and RLUSD, alongside a separate pool for native Bitcoin collateral. LlamaRisk recommends a 78% collateral factor, while Babylon targets a restricted rollout for late 2026. Liquidation risk would remain, potentially triggering the seizure of entire BT CVaults and involving WBTC for settlement.
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