Interest rate cuts have been implemented, but instead of rising, BTC has fallen below $110,000. Is a bear market here? Holding native BTC, wanting to borrow some stablecoins for liquidity, but not wanting to remove the coins from the Bitcoin blockchain. @build_on_bob has dropped a bombshell: the Bitcoin Vault Liquidation Engine. It allows BTC to be directly pledged to any on-chain lending protocol, securely locked in the Bitcoin itself. Let's talk about the pain points. Current DeFi lending using BTC vaults has three major pitfalls: ➼: Whitelist system, poor liquidity, and easy centralization. ➼: If the position is flooded, it's all wiped out; you can't just sell scraps. ➼: Slow liquidation; a market tremor can wipe you out. BOB's engine? Directly crushes these! The core innovation is super simple: ➼ Liquidation for everyone: Whoever has spare cash can participate; no need to beg or plead. ➼ Smart Partial Liquidation: Only sell enough collateral to restore LTV, ensuring your BTC isn't completely wiped out. ➼ Blitz-Scale Transaction: The interrogation period is shortened to 10-60 minutes. Market volatility? We'll keep up! ➼ One-Click Atomic Transaction: Like traditional DeFi, a single transaction repays the loan and acquires the asset, with zero friction. How does it work? Instead of directly sending BTC to the liquidator, it uses a bridge model. Multiple liquidators work in teams, and smart contracts automatically distribute the profits. 50% of wBTC on Ethereum is tied up in lending—the demand is explosive! But that's a packaged version, and it's limited to one chain. BOB unlocks native BTC, a cross-chain frenzy—trillions of idle Bitcoin can finally play in DeFi, without abandoning the ironclad rule of self-custody. This engine truly brings BTC vaults to the forefront of lending. Bitcoin is no longer an outsider to DeFi. #bob #btcdefi
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