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