We've completed the first Trustless Vaults experiment. We successfully borrowed USDC against native BTC on Ethereum Mainnet with Morpho Labs. BTC is the largest capital pool in crypto and has been cut off from DeFi. We solved this. This is a historic moment. The experiment 👇

No wrapped BTC. No bridges. No custodians. Just deposit BTC into the Trustless Bitcoin Vault -> use the BTC as collateral on Morpho -> borrow USDC -> repay the loan -> withdraw their BTC.

The system worked end-to-end: ✅ Deposits & withdrawals ✅ Borrowing & repayments ✅ Liquidations ✅ Proof verification Every step cryptographically enforced, no intermediaries, no custodians.

Three key scenarios with trustless bitcoin vaults and lending were executed. • Normal repayment → BTC withdrawn • Fraud attempt → withdrawal blocked • Undercollateralized position → liquidated, BTC claimed by liquidator All worked perfectly.

When a depositor locks BTC into a Trustless Bitcoin Vault, the system mints an intermediate collateral representation that interacts with Morpho lending pools. It's non-transferable and only used to interface with Morpho. The differentiator: ZK tech enables trustless collateral management.

To withdraw your Bitcoin locked in a trustless vault, you must cryptographically prove you are its owner. Specifically, the proof system uses ZK technology that compiles programs into succinct proofs. You generate a proof demonstrating your claim to the Bitcoin, and this enables the withdrawal.

No committee validates withdrawals. No custodian approves transactions. The cryptography enforces who can withdraw, using Zero-Knowledge proofs to verify events on the lending app.

Here's the key Bitcoin and Ethereum transactions involved in the experiment: Pegin: Claim: Payout: ETH depositor: This experiment connects Bitcoin and Ethereum: the two largest blockchains by market cap, through cryptographic proofs rather than trusted intermediaries

BTC holders don't face an impossible choice: remain safe but idle, or bridge into DeFi and lose control. This preserves what makes BTC valuable: self-custody and trustlessness. The $2.5T behemoth is open to DeFi.

@MorphoLabs Huge milestone for Babylon 👏

@MorphoLabs Appreciate the support guys

GMorpho🦋

GMorpho

@MorphoLabs Historic breakthrough! Unlocking Bitcoin's full DeFi potential is amazing!

@MorphoLabs gBaby!

@MorphoLabs Awesome milestone. Native BTC lending is heating up. See you at launch 👀

@MorphoLabs Huge congratulations to the Babylon team on this great milestone reached in BTCFi history. We are beyond excited and ready to preach this!

@MorphoLabs Your support means a lot!

@MorphoLabs 🫡🫶

@MorphoLabs Congratulations 🥳 This is an amazingggg Milestone for Bitcoin and this industry 💛

@MorphoLabs Thanks Fher!

@MorphoLabs You are welcome 🫡

@MorphoLabs Congratulations Babylon 🧡

@MorphoLabs Thank you guys!

@MorphoLabs Big Congratulations Team, This is a huge milestone for BTCFi. Time to unlock Bitcoin liquidity trustlessly.

@MorphoLabs Congratulations! This is truly a milestone event!🥳🥳👏👏

@MorphoLabs Thanks guys!

@MorphoLabs Congratulations

@MorphoLabs

@MorphoLabs Trustless Vaults 🎉😬👏🏼🤯

@MorphoLabs This is a game changer for DeFi, bridging the gap between BTC and Ethereum is a significant leap forward. Can’t wait to see how this unfolds in the broader ecosystem

@MorphoLabs This is an excellent move

@YashasEdu @MorphoLabs Highly appreciated! Love your content

@MorphoLabs massive respect to the team for pulling this off. Big for BTCF

@MorphoLabs Really appreciate the support Mago

@MorphoLabs BTC self-custody meets DeFi yield the idle giant awakens

@MorphoLabs BTCfi will become great with Babylon

@MorphoLabs Babylon = BTCFi

@MorphoLabs BTCFi back again !

@MorphoLabs Make BTCFi great again

@MorphoLabs This is how BTC finally plugs into DeFi without breaking trust

@MorphoLabs Integrating @MorphoLabs for this is just what you love to see. Interoperability at it's finest.

@MorphoLabs LFG!

@MorphoLabs lfg!

@MorphoLabs WAGMI

Babylon Labs unlocking native BTC for DeFi loans on ETH, trustlessly? Finally, BTC maxis can degen into yield farming without the wrapped token headache. That $14 USDC liquidity for the first experiment is adorable, but the tech's the real whale here. When this scales, it's a massive unlock for Bitcoin's utility. Stack sats, degens, the leverage plays are coming. 😉 #DeFi #BTC

@MorphoLabs absolute madness 💪 congrats to the team!

@MorphoLabs Bao giờ mới trả lại tiền của chúng tôi đã staking vào babylon

@MorphoLabs @babylonlabs_io unlocking btc's idle trillions feels like degen dreams realized. yield farming native sats incoming?

@MorphoLabs BTC idles no more.

@MorphoLabs gm babylon, btc finally yields without the custody curse

@MorphoLabs Bring trustless BTC vaults to reality by @dntse and @baby_fisherman

@MorphoLabs @dntse @baby_fisherman 🧡🫶

@MorphoLabs It's time for BTCFi era.

@MorphoLabs Yes ser. You know it.

@MorphoLabs @babylonlabs_io BTC unchained. Who's borrowing next?

@MorphoLabs HUUUGE

@MorphoLabs no, u r huge! thanks for the support ser!

@MorphoLabs Game changer. Curious how this scales for BTC whale lending?

@MorphoLabs Oh wow

@MorphoLabs This unlocks BTC's $2.5T for programmable economies self-sovereign capital at last. What's the wildest yield strategy you'd run on native sats?