Why is native Bitcoin still difficult to use as collateral? Because Bitcoin is not programmable. As a result, using Bitcoin in on-chain finance has typically meant handing over your Bitcoin to a third party.

Furthermore, native Bitcoin collateral infrastructure is still maturing. That's where Babylon comes in. Babylon Trustless Bitcoin Vaults (TBV) let native Bitcoin be used as collateral on any chain and in any application, without wrapping, bridging, or intermediaries.

That’s the key problem to solve. Billions in BTC sitting outside DeFi is an infrastructure issue, not a lack of demand. TBV is the game changer here.

Native BTC collateral should be secured by Bitcoin itself, not by trusting an intermediary.

The bigger unlock here is giving BTC a more active role in on-chain finance.🚀

The more native BTC can interact with on-chain finance, the bigger the BTCFi opportunity becomes.

No bridge sounds good, but liquidation is the hard part. When the price suddenly wicks, can native BTC still be liquidated without relying on a third party? #Bitcoin

Trusted one

Good

True, but isn't that the whole point of wrapped BTC? Trust trade-off. What's the non-custodial alternative you're building?

The lack of programmability is exactly why wrapped assets gained traction in the first place.