Update
Babylon’s Proposed Native Bitcoin Market on Aave V4 Update
Babylon’s proposed native Bitcoin lending market on Aave V4 could bypass pool funding, according to a pre-listing assessment by LlamaRisk. The direct route would still require Wrapped Bitcoin (WBTC) for application fees, borrower-surplus payments, and WBTC debt repayment. Required payment failures would affect both routes, with the keeper needing to transfer WBTC to repay the loan even when application fees and borrower-surplus payments are zero. The integration contracts have not been deployed on Ethereum mainnet, and Babylon’s contract directory identifies its published addresses as Sepolia testnet deployments.