Aave Governance Weighs Bitcoin Lending Design and $1.33B Collateral Wind-Down

A preliminary vote backed a Babylon design for borrowing stablecoins against BTC held on Bitcoin, but mainnet use still requires a final AIP; whole-vault liquidation and WBTC-based settlement are important caveats. Separately, LlamaRisk proposed winding down $1.33B in Aave V3 Core collateral through staged freezes and borrower exits; neither proposal is a completed change.