{"id":695161,"date":"2025-10-16T17:10:12","date_gmt":"2025-10-16T14:10:12","guid":{"rendered":"https:\/\/buradabiliyorum.com\/en\/trustless-with-caveats-babylons-big-bitcoin-defi-claim\/"},"modified":"2025-10-16T17:10:12","modified_gmt":"2025-10-16T14:10:12","slug":"trustless-with-caveats-babylons-big-bitcoin-defi-claim","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/trustless-with-caveats-babylons-big-bitcoin-defi-claim\/","title":{"rendered":"Trustless, with caveats: Babylon\u2019s big Bitcoin DeFi claim"},"content":{"rendered":"

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Babylon Labs says it has built a system using BitVM3 that allows native Bitcoin to be used as trustless collateral for borrowing on Ethereum, but its trustless design raises questions.<\/p>\n

A co-founder of Bitcoin infrastructure company, Babylon Labs, claims to have built a system that allows for native Bitcoin to be used as trustless collateral to borrow on the Ethereum blockchain.<\/p>\n

In a Wednesday X post<\/a>, Babylon Labs co-founder and Stanford University professor David Tse claimed Babylon built a proof-of-concept allowing for native Bitcoin (BTC<\/a>) \u201cto be used trustlessly as collateral to borrow on Ethereum for the first time.\u201d<\/p>\n

The comments follow Babylon\u2019s release<\/a> of a white paper in early August, outlining what it calls a Bitcoin trustless vault system. The system leverages the Bitcoin smart contract verification system BitVM3<\/a> to lock BTC in per-user vaults, where withdrawals (redemption or liquidation) are gated by cryptographic proofs of external smart contract state verified on Bitcoin.<\/p>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Babylon Labs says it has built a system using BitVM3 that allows native Bitcoin to be used as trustless collateral for borrowing on Ethereum, but its trustless design raises questions. A co-founder of Bitcoin infrastructure company, Babylon Labs, claims to have built a system that allows for native Bitcoin to be used as trustless collateral…<\/p>\n","protected":false},"author":1,"featured_media":695162,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2025-05\/0196aa03-8387-71ef-994b-5fb712bf2f7e","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74899,74894,74863,74868,74891,77595,90109],"class_list":["post-695161","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-adoption","tag-blockchain","tag-cryptocurrencies","tag-defi","tag-ethereum","tag-lending","tag-peer-to-peer-lending"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/695161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=695161"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/695161\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/695162"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=695161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=695161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=695161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}