Babylon has advanced a proposal to integrate native Bitcoin as collateral for stablecoin loans on Aave V4. The initiative aims to enable borrowers to utilize Bitcoin holdings directly within the lending protocol while maintaining collateral security on the Bitcoin network. The proposal introduces a mechanism allowing liquidators to receive Wrapped Bitcoin (WBTC) immediately upon liquidation events. This upgrade eliminates the multi-day waiting period typically associated with native Bitcoin redemption, significantly improving capital efficiency and risk management for lenders in the event of borrower default.