Aave Labs has submitted a Direct-to-AIP governance proposal to list BTC.b on the Aave V4 Core Instance on Ethereum, marking a planned expansion for the bridged Bitcoin asset within the protocol.
If approved, the move would extend BTC.b beyond its current availability on Aave’s Avalanche deployments, where it is already listed on both the V3 Core Instance and the V4 Core Instance. The proposal is still incomplete on final settings, with risk parameters to be added by Aave’s Risk Service Providers before it advances to a vote.
Proposal scope
The forum post outlines a single change: onboarding BTC.b to Aave V4 Core on Ethereum. The asset address listed in the proposal is 0xB0F70C0bD6FD87dbEb7C10dC692a2a6106817072.
Aave says the proposal is following the Direct-to-AIP route, a process that is used to move a change toward an Aave Improvement Proposal without an earlier governance stage described in the post. Final confirmation would still require an AIP vote and onchain execution.
Why BTC.b is being considered
According to the proposal, BTC.b is a bridged representation of Bitcoin supported by Lombard’s infrastructure. Aave Labs said adding it to Ethereum would broaden the range of BTC collateral available in Aave V4.
The post also argues that bringing BTC.b to the Ethereum V4 Core Instance would allow the Aave DAO and its service providers to set a configuration tailored specifically to V4, rather than simply mirroring existing deployments.
Risk settings still pending
The proposal does not yet include the final risk framework for the asset. Instead, Aave states that the risk parameters and final configuration will be supplied later by the protocol’s Risk Service Providers, and the proposal will be updated once that work is complete.
That means key listing details remain outstanding for now. The current forum post establishes the intended asset and target market, but not the completed operating parameters that would govern its use if the listing is approved.
Disclosures and next steps
Aave Labs said it prepared the proposal as a contributor to the Aave ecosystem. It also stated that it has no direct financial relationship with Lombard Finance or its affiliates and has not received compensation from them in connection with the proposal.
The process described in the post has three immediate steps: gather feedback from the community and service providers, incorporate the final configuration from Risk Service Providers for the Aave V4 Core Instance, and then publish the AIP for final confirmation and onchain enforcement. Until that vote is published and approved, the BTC.b Ethereum V4 onboarding remains a proposal rather than a completed listing.
Source: governance.aave.com