Now the on-chain lending is all about packaged assets—WBTC, renBTC, which are used as collateral to borrow liquidity.



The slogans of this wave of BTCFi projects are basically all "Let native BTC work," but in the end, they are still packaged into tokens like aBTC, bBTC, and then thrown into the lending pool for circulation. In other words, they are still trapping BTC.

If Aave could really support native BTC collateral directly, that would truly open up this path. There would be no need to go around in circles with wrapping protocols; using real BTC to borrow money and do things directly would completely change the imaginative space for the entire BTCFi ecosystem.
WBTC1.14%
BTC1.07%
AAVE-0.88%
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