On our latest episode of "The Vault" @alphaleaked, from @aave, framed how borrowing against native BTC through TBVs will be like taking out a loan against a bar of gold that is still sitting in your own safe.
Here's the flow on the current design:
--> the user sets up the vault,
--> deposits BTC to the vault address on Bitcoin,
--> waits for finality,
--> then uses the resulting vault-linked collateral to borrow on Aave.
Very different from the usual bridge-first, wrap-first, trust redemption later flow as seen on wrapped versions.
