Snapshot
Continue to About ↓- What it does
- Trustless Bitcoin Vaults (TBV) is Babylon Labs' self-custodial protocol that lets holders lock native Bitcoin on the Bitcoin network and use it as collateral on other chains and applications without wrapping, bridging or a centralized intermediary.
More detail
- The first integrated use case is native Bitcoin-backed stablecoin borrowing on Aave V4, currently on public testnet.
- Babylon Labs also offers Bitcoin Staking, which locks native Bitcoin to help secure proof-of-stake chains for rewards.
- Best for
- Bitcoin holders who want liquidity or yield from Bitcoin they already hold without selling, wrapping or bridging it, including institutions and sophisticated participants evaluating native-BTC credit.
More detail
- Builders and product teams looking for composable native-Bitcoin collateral infrastructure may also find it relevant.
- Pricing
- Babylon Labs states it collects no compensation for use of the services
More detail
- users pay Bitcoin network fees for staking, unbonding and withdrawal, and fee estimates may be exceeded.
- Borrowing costs arise at the lending venue: interest and repayment are owed on the Aave V4 position, and liquidation can o
- Main limitation
- Users who need a live production borrowing product now, since TBV's Aave V4 borrowing is on public testnet, or those unwilling to manage Bitcoin wallets, multi-step signing and a withdrawal challenge period.
More detail
- It is not a custodial, instant on/off-ramp service.
- Record
- Living and monitored
- Reviewed
- Evidence
- Public web research
- Machine access
- Structured profile ↗
About
- Trustless Bitcoin Vaults (TBV) is Babylon Labs' self-custodial protocol that lets holders lock native Bitcoin on the Bitcoin network and use it as collateral on other chains and applications without wrapping, bridging or a centralized intermediary.
- The first integrated use case is native Bitcoin-backed stablecoin borrowing on Aave V4, currently on public testnet.
- Babylon Labs also offers Bitcoin Staking, which locks native Bitcoin to help secure proof-of-stake chains for rewards.
What it helps with
- Most Bitcoin is not used as collateral: Babylon cites roughly 3% for Bitcoin versus about 10% for gold and 20% for ETH,
- Using Bitcoin as collateral has traditionally required wrapping, bridging or trusting a centralized intermediary.
- Bitcoin holders lack direct access to Ethereum lending liquidity without giving up custody.
- Institutions face variable on-chain borrowing costs that are hard to forecast, which the planned Aegis fixed-rate produc
- Proof-of-stake chains need economic security that Bitcoin holders can supply without third-party custody.
Capabilities
A practical view of what is available and where limitations apply.
| Offering | Available | Detail |
|---|---|---|
| Self-custodial BTCVault | Yes | Bitcoin is locked in a Taproot output on the Bitcoin network with spend paths committed at vault creation; the holder creates and activates the vault. |
| No wrapping or bridging | Yes | Official site states native Bitcoin is used without wrapping, bridging or centralized intermediaries. |
| Native Bitcoin borrowing on Aave V4 | Limited | Described as the first TBV use case; currently on public testnet, not asserted as live on mainnet. |
| Non-custodial operational roles | Yes | Vault Provider, Vault Keepers, Universal Challengers and Security Council have operational roles but never custody the depositor's BTC. |
| Partial liquidation | Yes | Liquidation occurs only if the position falls below the liquidation threshold; partial liquidation is supported. |
| Withdrawal challenge period | Yes | After a withdrawal request, a challenge period verifies it; official FAQ describes withdrawal taking about 3 days before native Bitcoin returns. |
| Bitcoin Staking | Yes | Separate product lets holders lock native Bitcoin to help secure proof-of-stake chains and earn staking rewards. |
| Fixed-rate borrowing | No | Planned with Aegis for Q4 2026, subject to development and testing; not currently available. |
| Disclosed fee schedule or pricing tiers | Unknown | Babylon states it takes no compensation; lending rates and any venue fees are not disclosed in the evidence. |
| Geographic availability | Unknown | No country exclusion list appears in the supplied evidence. |
Bot trust
How confidently AI systems can verify this profile from public evidence.
—of 100
ChatGPT—/100
Claude—/100
This profile has not completed a Bot Score assessment yet.
Evidence
Where this record came from, when it was reviewed, and how confidently it can be used.
- Verification
- Scribble researched these facts from the linked public sources.
- The owner has not manually confirmed every field.
- Last reviewed
- Primary source
- babylonlabs.io
Technical profile details
Record ID
9c9ad272-b8f8-4418-a913-bc2bbe2dd62fCanonical URLhttps://profiles.scribble.network/listing/trustless-bitcoin-vaults-tbv-9c9ad272